Illinois Attorney General Not Pursuing Tax-Exempt Hospital Responsibility Act in Current Session

03/23/2006

Illinois Attorney General Lisa Madigan has agreed not to pursue House Bill 5000, the Tax-Exempt Hospital Responsibility Act, in the current legislative session.

In a brief letter to hospital chief executives on March 22, 2006, the Illinois Hospital Association (IHA) announced that the Illinois attorney general and IHA have agreed they will continue to discuss the issues of hospital charity care obligations and hospital property tax exemption, with the goal of drafting acceptable legislation for the 2007 session. The agreement represents a recognition by both sides of the charity care debate that a clearer, statutory standard may be needed to resolve disputes about whether Illinois nonprofit hospitals provide adequate amounts of charity care in exchange for the benefits of state tax-exemption—disputes that are still pending in administrative and court proceedings in Illinois.

A Charity Care Task Force comprised of 20 individuals representing 48 hospitals has been established to provide input and guidance in the future charity care dialogue. We will continue to keep you apprised of significant developments emerging from this dialogue.

McDermott Will & Emery

McDermott Will and Emery