Ill. Governor Suspends Reviews of Nonprofit Hospitals’ Tax Status

Illinois Gov. Pat Quinn said Thursday that he wants the state to stop evaluating nonprofit hospitals’ tax exemptions, pending an effort to craft legislation that sets more definitive guidelines on the institutions’ charity obligations, reports the Chicago Tribune.

The state’s Department of Revenue set off a wave of unease among Illinois hospitals last month when it revoked property-tax breaks for three facilities, saying they did not provide enough charity care.

Another 15 such reviews are in the pipeline, but the revenue agency will take no action while talks on a solution are ongoing.

Mr. Quinn set a March 1 deadline for recommendations on new legislation. The Illinois Hospital Association, which represents nonprofit medical centers and had requested a suspension on tax reviews, will be included in the talks.

“It’s a temporary détente,” said Brie Callahan, a spokeswoman for the governor’s office. If the talks stall, she said, “then the Department of Revenue will have to do what is required by law and the [state] Constitution.”

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