A California Senate committee is questioning whether non-profit hospitals are deserving of their tax-exempt status after a state auditor's report revealed many state non-profits have loose rules for how much charity care they provide, according to a Los Angeles Times report.
The hearing today comes roughly two-and-a-half months after the Illinois Senate approved two bills that define criteria for hospitals to qualify for property tax exemptions and what actually qualifies as charitable care.
Currently, under California law, non-profit hospitals with tax exemptions must submit information on their community benefits and charity care, but there are no specific amounts of charity care that must be met to justify the tax-exempt status.
"Communities across California are served by non-profit hospitals, and we need to make sure they are honoring their commitment to serve the public that comes with their special tax-exempt status," state Senate Majority Leader Ellen Corbett (D-San Leandro) said in the report.
The hearing today comes roughly two-and-a-half months after the Illinois Senate approved two bills that define criteria for hospitals to qualify for property tax exemptions and what actually qualifies as charitable care.
Currently, under California law, non-profit hospitals with tax exemptions must submit information on their community benefits and charity care, but there are no specific amounts of charity care that must be met to justify the tax-exempt status.
"Communities across California are served by non-profit hospitals, and we need to make sure they are honoring their commitment to serve the public that comes with their special tax-exempt status," state Senate Majority Leader Ellen Corbett (D-San Leandro) said in the report.
More Articles on Hospital Charity Care and Tax-Exempt Status:
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