Illinois to Resume Reviews of Non-Profit Hospitals' Tax-Exempt Statuses

Illinois Gov. Pat Quinn has lifted the moratorium on state reviews of non-profit hospital property tax exemptions after state and hospital officials were unable to reach an agreement on how much charity care a tax-exempt hospital should provide, according to a Chicago Tribune report.

In August, the Illinois Department of Revenue denied the property tax exempt status of 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. In September, the IDR announced it would re-examine the tax-exempt statuses of 15 other hospitals and health systems, but Gov. Quinn agreed to halt the investigations until legislative recommendations were made regarding the definition of charity care.


Yesterday was the deadline for Illinois hospitals and the state to outline the definitions of charity care and tax exemptions, but neither side reached a deal.

The Illinois Hospital Association, IDR and other state officials said they will continue discussions to develop a legislative solution for hospital tax exemptions and associated charity care. However, IHA President and CEO Maryjane Wurth said in a statement the decision for the IDR to resume its reviews of hospital property tax exemptions "would be a distraction from the work that needs to be accomplished in developing a legislative solution over the next three months."

More Articles on Illinois and Non-Profit Hospitals:

Stalemate Persists Between Illinois, Non-Profit Hospitals Over Charity Care

What's Next for Illinois Non-Profit Hospitals and Their Tax-Exempt Statuses?

Illinois Gov. Pat Quinn Holds State Decisions on Hospital Tax-Exemptions

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Articles We Think You'll Like

 

Featured Whitepapers

Featured Webinars