Illinois Department of Revenue Denies Tax-Exempt Status to 3 Illinois Hospitals

The Illinois Department of Revenue has denied property tax-exempt status to three Illinois hospitals, reflecting the state's crackdown on non-profit hospitals, according to a Chicago Tribune report.

The affected hospitals are Northwestern Memorial's Prentice Women's Hospital in Chicago, Edward Hospital in Naperville and Decatur Memorial Hospital in Decatur. The department's move follows an Illinois Supreme Court ruling last year that deemed another Illinois hospital could not quality for tax-exempt status because it did not provide sufficient free or discounted care for the poor, according to the report.

All three hospitals have 60 days to ask for an administrative law judge's review of the department's decision.

The Illinois Hospital Association has released a statement expressing its "disappointment" with the department's decision. "Because the department did not provide any explanation for its initial rulings in these cases, it is not known what criteria and standards the department used," the statement said. "As is typical in these cases, DOR only issued very brief conclusory statements that the property is not exempt."

IHA plans to hold a special member briefing call on this issue.

Related Articles on Tax-Exempt Hospitals:

Some For-Profit Hospitals Provide as Much Charity Care to the Poor as Non-Profits
Wisconsin's Wheaton Franciscan Prevails in Tax Exemption Lawsuit Involving its Outpatient Clinics
13 Key Questions for Hospital-Physician Relationships — Assessing Legal Compliance

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