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NONPROFIT HOSPITALS

January 25, 2006

Lisa Madigan, Illinois attorney general, announced a proposal on Monday that would require the state’s nonprofit hospitals to spend at least 8 percent of their total operating costs on charity care each year, reports the Rockford Register Star. Ms. Madigan said Illinois nonprofit hospitals were not providing enough charity care to deserve their tax-exempt status. The president of the Illinois Hospital Association says the requirement would put some hospitals already facing financial challenges at risk and that a hospital’s benefit to its hometown cannot be measured solely by the amount of charity care it provides.