Tuesday, August 21, 2012
A tidbit from Fitch Ratings via Reuters:
Fitch views the increased scrutiny of the tax-exempt status of
California's nonprofit hospitals with concern given the added financial pressure
it could present if the tax-exempt status was revoked. The California Senate
Select Committee on Charity Care and Nonprofit Hospitals began hearing arguments
last week considering whether hospitals provide sufficient charity and community
benefit to justify their tax-exempt status. A state audit published in early
August showed that there is no defined amount of community benefits required
from nonprofit hospitals, and the amounts they provide vary widely.
See also this report issued by the Califonia Nurses Association. So will California be the next state to tackle tax exemption for nonprofit hospitals? If so, I hope they do a better job than Illinois . . .