This is big stuff for Illinois because finally we are moving toward a legal definition of what level of charity care a hospital must provide in order to be seen as eligible for property tax exemption. Somehow, less than one percent seems too LOW when you look at how many people need medical care and can't get it because they have no insurance.
Lisa Madigan's office has been working on this issue, the Dept of Revenue has been involved, and now it is probably headed to the courts. This is the AP article about it, but even the Wall Street Journal has an article about this (and I can't get too it because I don't subscribe.)
State revenue director says hospital should not be exempt from property taxAssociated Press
SPRINGFIELD, Ill. - Director Brian Hamer of the Illinois Department of Revenue ruled Friday that Provena Covenant medical Center in Urbana does not provide enough charity care to qualify for reinstatement of its former exemption from local property taxes.
Hamer noted that in one recent year Provena Covenant had $113.5 million in revenue but incurred only $832,000 in charity care costs - less than one percent of its income.
The matter dates back to January 2003, when the Champaign County Board of Review recommended that the state refuse to renew Provena Covenant's application for tax-exempt status. At the time, the board cited what it called the hospital's overly aggressive attempts to collect money from poor and uninsured patients...
http://www.belleville.com/mld/belleville/news/state/15648142.htmThe entire hospital industry in this nation has waited for this ruling to hit, and it DID hit, I think. Celebrate it, please, because it can potentially help change the health care system on a national level.
Regards!
Laura
On a personal note: We waited a very long time for this ruling, and it feels good to be vindicated for our initial local decision.