Not-for-profit hospital tax exemptions are under fire. Last week ModernHealthcare.com published an article on the Illinois 4th District Appellate Court ruling about a 2012 Illinois law that declares what hospitals have to do to achieve tax exemptions is unconstitutional. The law, when passed in 2012, was seen as a huge benefit for not-for-profit hospitals who now had clear standards of how to maintain their tax-exempt status. The case will go to the Illinois Supreme Court for the final ruling.
As cities and states look for additional tax revenues to run city and state budgets, not-for-profit hospitals are a big source of new revenue. Hospitals in Ohio, Pennsylvania, and New Jersey have also faced challenges.