IL Supreme Court Rules Against Provena Healthcare, In Challenge to Its Nonprofit Status

FROM: The Center for Tax and Budget Accountability

Chicago, IL - 3/18/2010 The Illinois Supreme Court clarified state law today in its decision in Provena Covenant Medical Center v. The Department of Revenue.

"This is a groundbreaking decision because it makes clear that Illinois non-profit hospitals must provide charitable care to poor, uninsured patients in exchange for the valuable property tax exemptions granted by local government. The Court stated that 'if a charitable institution wishes to avail itself funds which would otherwise flow into a public treasury' it must provide a charitable public service in exchange," according to Heather O'Donnell, Policy Director of Healthcare and Human Services at the Center for Tax and Budget Accountability, which filed an amicus brief in the case.

All states, as well as the federal government, have been waiting on the Provena decision for guidance on what the standard should be for the multiple tax benefits granted to non-profit, charitable hospitals. This decision will have a significant impact on improving access to affordable health care for the poor, especially during such difficult economic times. For further information, click here