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Owner vs. Customer

A 501 (e) Non-Profit Cooperative Hospital Services Organization (CHSO) allows a non-profit hospital to participate as an owner/member in an organization that extends the hospital walls into the community they serve.

The 501(e) CHSO Structure provides the following

  • Governance: Member controlled
  • Net Earnings: Remuneration safe harbor protected
  • Charitable Mission: Earnings fund charitable mission
  • Corporate Structure: Members are not liable for the liabilities of the CHSO
  • Economy of Scale: Strength in numbers & lower costs

A 501(e) membership is limited to (501c3) non-profit hospitals. This structure allows us to work with members to develop programs for them. Regardless if the program is designed to shorten the length of stay or provide access to compounded drug, the member has input into program development, ongoing management and complete access to outcomes/quality results. We believe our 501(e) structure is the perfect vehicle for a hospital to expand into ancillary opportunities that are clinically important. It allows ownership with the associated control and equity, while taking advantage of the benefits associated with economies of scale by being part of a larger organization.

Value of Ownership

  • Best in Class
  • Transparency: Access to information, operations/outcomes
  • Commitment on Quality & Safety Measured Performance
  • Control: Input into program design, management & quality control
  • Maximize resources: increase availability/avoid drug shortages
  • Alignment of Vision & Mission to Quality: Non-profit collaborative
  • Equity: Equity growth through utilization, downstream revenue captured

Advanced Compounding Solutions provides the utmost member control. Member benefits include participation in program design and oversight, a member only board of directors and alignment of vision & mission with the ultimate goal of clinical quality with patient focus.