Article: Nonprofit Governance Reform; The Fitch Report and Other Updates.

Summary

Action: Fitch Ratings issues report that urges nonprofit health care providers ("providers") to adopt nine specific provisions of Sarbannes-Oxley ("SOX").

Impact: Compliance with the SOX provisions will likely be a point of inquiry for providers seeking a credit rating from Fitch and, possibly, other credit rating agencies as well. In view of the burden of adopting SOX compliance measures, the likelihood of federal nonprofit governance reform legislation in at least some form, and the possibility of a conflict between such legislation and SOX, providers which will not be seeking a credit rating in the near term may wish to assume a "waitand- ...

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