Nonprofit Hospital Fails Tax Exemption Test: Court

Law360, New York (March 19, 2010, 4:05 PM EDT) -- The Illinois Supreme Court has ruled that Catholic-affiliated nonprofit hospital Provena Covenant Medical Center is not eligible for a state property tax exemption because it has failed to provide adequate charity care to qualify for that tax designation under state law.

In a plurality decision the state high court ruled Thursday that the Urbana, Ill., hospital, operated by Provena Health subsidiary Provena Hospitals, supplied free care that was far below the potential need in the community, demonstrating that profits were actually its key aim.

The state...
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