The Illinois Department of Revenue, the Illinois Attorney General's Office, the Illinois Hospital Association and Gov. Pat Quinn's office are getting closer to defining the parameters of how much charity care is required of non-profit hospitals in order for them to keep their tax-exempt status, according to a Rockford Register Star report.
Charity care recommendations are due to Gov. Quinn's office by March 1, according to the report. In August, the IDR denied the property tax-exempt status of three Illinois non-profit hospitals — Northwestern Memorial's Prentice Women's Hospital in Chicago, Edward Hospital in Naperville and Decatur (Ill.) Memorial Hospital — due to low percentages of charity care as a percent of their net patient revenues.
The four regulatory groups have communicated roughly two to three times per week over the past several months in drafting the guidelines, although there is no indication of what the charity care guidelines will be. The AG's office proposed that charity care should represent 8 percent of a non-profit hospital's net patient revenue, although hospitals have argued that other community benefits in addition to charity care should be factored into the parameters.
Charity care recommendations are due to Gov. Quinn's office by March 1, according to the report. In August, the IDR denied the property tax-exempt status of three Illinois non-profit hospitals — Northwestern Memorial's Prentice Women's Hospital in Chicago, Edward Hospital in Naperville and Decatur (Ill.) Memorial Hospital — due to low percentages of charity care as a percent of their net patient revenues.
The four regulatory groups have communicated roughly two to three times per week over the past several months in drafting the guidelines, although there is no indication of what the charity care guidelines will be. The AG's office proposed that charity care should represent 8 percent of a non-profit hospital's net patient revenue, although hospitals have argued that other community benefits in addition to charity care should be factored into the parameters.
Related Articles on Illinois Charity Care:
Illinois Considering Proposal to Tax Non-Profit Hospitals But Offer Credits for Free Care
Illinois County Assessor Moves Forward With Property Tax on Prentice Women's Hospital