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Three Nonprofit Hospitals Are Denied Tax-Exempt Status

On the heels of the recent report that some California nonprofits were being denied tax-exempt status, FierceHealthcare.com reported last week that 3 nonprofits hospitals in Illinois lost their claims for tax-exemption.  According to the report, the Illinois Department of Revenue shot down the request because the hospitals didn’t provide enough charitable care to their patients.  The three hospitals were Northwestern Memorial Hospital: Prentice Women’s Hospital, Edward Hospital, and Decatur Memorial Hospital.

The decision by the state of Illinois is hardly surprising given its recent history on these matters.  The Illinois Supreme Court ruled last year that Provena Covenant Medical Center didn’t fit the requirements of a nonprofit because only one-half of a percent of patients received charitable care during 2002.  Provena flatly denied this charge, saying they provided $38 million in free care and benefits. 

Similarly, the three hospitals in this most recent decision have released statistics to fight the charges from the state.  They now have 60 days to have a judge review the state’s decision.  We will be sure to provide an update should that happen.  In the mean time, read the full article from FierceHealthcare.com


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