Illinois Considering Proposal to Tax Non-Profit Hospitals But Offer Credits for Free Care

The Illinois Department of Revenue is reportedly considering a proposal that would charge non-profit hospitals property tax but offer them credits for free care provided to the needy, according to a Crain's Chicago Business report.

The plan also proposes using a portion of the tax money to increase Medicaid funds and finance primary care clinics, according to the report.

The move follows the department's decision to assess property taxes on several non-profit hospitals in the state for providing charity care equal to less than 2 percent of net patient revenue. Gov. Pat Quinn halted the decision until state legislators could determine specific guidelines for charity care levels.

Related Articles on Hospital Tax Status:

What's Next for Illinois Non-Profit Hospitals and Their Tax-Exempt Statuses?
Illinois Gov. Pat Quinn Holds State Decisions on Hospital Tax-Exemptions
Illinois Investigating 15 Other Systems' Charity Care; Hospitals Rev Up Lobbying
Illinois Department of Revenue Denies Tax-Exempt Status to 3 Illinois Hospitals

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