No ex­emp­tion

Provena rul­ing could af­fect Illi­nois not-for-prof­its

Modern Healthcare - - The Week In Healthcare - Gregg Blesch

Illi­nois hospi­tal leaders may feel the ground trem­bling. A new rul­ing by the Illi­nois Supreme Court sug­gests not­for-profit hos­pi­tals could have to pay lo­cal taxes on that turf be­neath their feet. The court last week up­held the state’s de­ci­sion to strip the prop­erty-tax ex­emp­tion from 202-bed Provena Covenant Med­i­cal Cen­ter be­cause it wasn’t us­ing the land ex­clu­sively for char­i­ta­ble pur­poses.

The Ur­bana, Ill., hospi­tal’s seven-year dis­pute drew na­tional at­ten­tion and par­al­leled a broader de­bate about the def­i­ni­tion of com­mu­nity ben­e­fit and how much of it jus­ti­fies tax-ex­empt sta­tus. Sen. Chuck Grass­ley (R-Iowa), who has pushed to make hos­pi­tals prove they de­serve the tax break, is­sued a state­ment say­ing that the Provena case shows “there is of­ten no dis­cernible dif­fer­ence be­tween the op­er­a­tions of tax­able and tax­ex­empt hos­pi­tals.”

The health­care re­form bill that could soon be­come law would re­quire ex­pan­sive re­port­ing from hos­pi­tals on their fi­nances and char­i­ta­ble ac­tiv­i­ties, pe­ri­odic re­views of hos­pi­tals’ wor­thi­ness and a $50,000 tax im­posed on hos­pi­tals that are deemed to have failed.

Deaton: Hos­pi­tals will be “shocked and alarmed.”

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.