Ill. Lawmakers Revise Rules on Hospital Charity Care

The Illinois Senate approved legislation Tuesday setting a firm formula for how much charity care nonprofit hospitals must provide to qualify for tax exemptions, putting a likely end to years of wrangling over the issue, says the Chicago Tribune.

The measure, which has already been passed by the Illinois House and is expected to be signed by Gov. Pat Quinn, would require that the value of free or discounted care offered by nonprofit medical centers equal or exceed what they would owe in property taxes.

The bill broadens the definition of charity care–previously limited to free treatment of needy patients–to include institutions’ annual Medicaid shortfalls and contributions to community health groups and education programs, among other things. Hospitals have long sought such an expanded definition.

Nonprofit hospitals faced the prospect of paying millions of dollars in property taxes after state regulators denied exemptions to three institutions last year, saying they did not provide sufficient charity care. A subsequent effort by Governor Quinn to craft a negotiated solution failed, setting the stage for the legislation.