News Headlines Article

Calif. bill challenges tax exemption for profitable not-for-profits
Modern Healthcare

California hospitals are decrying a bill supported by organized labor that threatens to strip tax exemptions from profitable not-for-profit hospitals in the state. Officials with the California Nurses Association say the proposed law—AB 975—is an attempt to bring more accountability to money-making hospitals that use tax exemptions to turn tidy profits and give hefty salaries to executives.

Hospital officials say the law seeks to impose a misguided “one-size-fits-all” approach to community benefits that will punish the most-charitable hospitals and harm programs for the poor by taking away tax exemptions.