Tax-exempt hospitals and health systems (HHSs) are increasingly partnering with for-profit businesses as part of their innovation strategies. Navigating the complex tax and other legal issues that can arise from these arrangements and negotiating successful business relationships are critical for the success of the collaboration. In the third installment in our Focus on Innovation Centers series, Erika Mayshar and Robert Louthian, III review the top tax exemption considerations for HHS business and legal teams.