Overview
Michael Peregrine and William Smith wrote this bylined article about a recent federal appellate decision that provides useful guidance to nonprofit health systems on fiduciary conduct which may expose leadership to personal liability, particularly with oversight of management and attention to business affairs. “The decision is notably significant given the paucity of reported decisions which specifically identify board actions or inaction that constitute a breach of fiduciary duty,” the authors wrote, especially regarding the controversial “deepening insolvency” theory.
