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Treat the poor or lose tax-exempt status, landmark case states

Guest Blog by Holly Lang, Georgia Watch

In a March ruling that could hold implications for all nonprofit hospitals, the Illinois Supreme Court stripped not-for-profit Provena Covenant Medical Center of its exemption from property tax, stating that the hospital did not provide enough charity care to justify that exemption.

 

A hospital earns its tax-exempt status through the benefits it provides to the community, the most of which being the free or reduced-cost care for those eligible for such assistance. Such care is deemed indigent or charity care.

 

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