Illinois Investigating 15 Other Systems' Charity Care; Hospitals Rev Up Lobbying

The Illinois Department of Revenue is re-examining 15 additional health systems' tax-exempt statuses based on how much charity care they provide to the community, according to a Chicago News Cooperative report.

Last month, the Illinois Department of Revenue denied property tax-exempt status to three Illinois hospitals, reflecting the state's crackdown on non-profit hospitals that do not provide sufficient charity care. The affected hospitals were Northwestern Memorial's Prentice Women's Hospital in Chicago, Edward Hospital in Naperville and Decatur Memorial Hospital in Decatur. According to the report, the three hospitals provided between 0.96-1.85 percent of patient care revenue to charity care.

In response to the department's move, Sen. Iris Y. Martinez (D-Chicago) is revving up efforts to pass legislation that would require non-profit hospitals to commit 3.5 percent of their annual revenue to charity care, according to the report.

Meanwhile, Illinois hospitals are teaming together to lobby lawmakers for a new and broader definition of hospital tax exemption, one that would include the cost of emergency services and other "money-losing services" in determining a hospital's tax-exempt status.

Related Articles on Tax Exemption:

Illinois Department of Revenue Denies Tax-Exempt Status to 3 Illinois Hospitals
Some For-Profit Hospitals Provide as Much Charity Care to the Poor as Non-Profits
3 Key Concepts Surrounding Tax-Exemption and ACOs

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