Was talking with a colleague about health care reform this weekend and an interesting question came up.
If exemption from federal income and/or state property taxes for non-profit hospitals is based upon providing “charity care” to their surrounding communities, how will hospitals qualify for income tax and property tax exemptions if health care coverage becomes “universal” and there is no longer a need for “charity care”? With declining revenues, requiring hospitals to pay income and property taxes would probably bankrupt some smaller institutions and inner-city hospitals.
We weren’t the first ones to consider the issue – a good discussion is here.
Still, there aren’t any answers out there.