News Headlines Article

Hospitals weigh a taxing question
Redding Record Searchlight

As not-for-profit hospitals across the country are asked to justify their tax-exempt status, Mercy Medical Center CEO Mark Korth said he has no doubt what would happen if the Redding hospital were required to pay taxes like its crosstown, for-profit competitor, Shasta Regional Medical Center.

He said paying taxes would translate to layoffs for the hospital’s 1,700 employees and massive cuts to such programs as the hospital’s maternity center, its senior nutrition program and outpatient chemotherapy centers, all money-losing programs he says the hospital is able to keep afloat because of the tax break.