The judge ruled the hospital’s Au Bon Pain cafeteria and some office space in the hospital’s cancer center and children’s hospitals were “undisputedly” run for profit, but no monetary value was given in the summary judgment, according to the report. Hospital officials agreed that some parts of the hospitals were run for profit, but argued that all activities run under the hospital were part of its non-profit, charitable mission.
The town of Morristown brought the hospital to court last year, alleging that it had failed to pay tax bills from 2006 for parts the town assessed to be taxable at $34.7 million, which would bring in over $800,000 annually based on school tax rates, according to the report. Former mayor Donald Cresitello had previously proposed a 50 cent parking tax on the hospital to address this concern, but the hospital rejected that proposal.
Read the Record’s report on Morristown Memorial Hospital.
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