Not-for-profit hospitals are tax exempt. Seven of the ten most profitable U.S. hospitals are nonprofit, according to new research. One hospital, located in Urbana, Ill., is involved in a contentious court battle. The decision could determine whether medical facilities are paying their fair share of taxes.
According to this study, delivery of patient care was a money-loser for 55% of hospitals in 2013, which was the year the study was done. About one-third of these hospitals made some money, up to $1,000 per patient. About 12% of those in the sample research group made more than $1,000 per discharged patient. The highly profitable hospitals were mostly for-profit corporations. In this group were Medical City Dallas Hospital in Texas and Swedish Medical Center in Englewood, Colo.
The not-for-profit hospital Carle Foundation Hospital in Illinois claimed tax exemption, but state appeals court in January 2016 ruled Illinois law allowing hospitals to avoid taxes is unconstitutional.
Kreisman Law Offices Professional Corporation

