Hospitals and Tax Exemptions for Charity Care

Burden higher for nonprofit hospitals, Illinois Supreme Court says, By Bruce Japsen and Jason Grotto, March 19, 2010, Chicago Tribune: “An Illinois Supreme Court decision Thursday puts nonprofit hospitals on notice that they must provide an adequate amount of charity care to patients or risk losing significant tax exemptions. The decision, closely watched at a time when medical centers and the government are straining to cover health care costs for the poor, is a blow to the state’s hospital industry. It sets the stage for a potential debate about exactly how charitable hospitals must be, with some experts predicting that Springfield could seek to pass a law mandating the amounts. In the meantime, state officials indicated they could incorporate the court ruling into their assessments of whether to renew hospital tax exemptions. In its decision upholding a lower court ruling, the high court found that the Illinois Department of Revenue was correct in withdrawing Provena Covenant Medical Center’s property tax exemption in 2004 because the Urbana hospital failed to justify adequately the exemption through charitable giving…”