Illinois Hospital Association

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February 4, 2009

IHA Backs Provena in Brief to Supreme Court

IHA has filed a friend-of-the-court brief in the Illinois Supreme Court, urging the court to overturn an appellate court ruling that revoked the property tax-exemption of Provena Covenant Medical Center, Urbana. Provena filed its brief earlier this week.

In its brief, IHA said the decisions by the appellate court and Illinois Dept. of Revenue (DOR) denying Provena's tax-exemption have established a new and unprecedented test for charitable property tax-exemption. IHA noted that "in an unbroken string of cases dating back to 1893, the Illinois Supreme Court has expressly rejected this precise approach, explaining as recently as 2004 that, 'A charity is not defined by percentages.'"

IHA also argues that non-profit hospitals fulfill their charitable purpose of providing health care to their communities in a variety of ways and that DOR's narrow and mathematical "charitable care" analysis will harm the health care delivery system. "By ignoring all community needs except free care, and by penalizing hospitals for 'insufficient' free care, the Department creates a perverse economic incentive to shift resources away from any community needs other than free or discounted care," IHA stated in the brief.

AHA and the Catholic Health Association of the U.S. also filed briefs in support of Provena. A ruling by the Supreme Court is expected by the end of 2009.