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Not-for-profit hospital will pay up in tax dispute as exemptions draw widespread heat
Modern Healthcare

In a closely watched case, a New Jersey hospital has agreed to pay $26 million to the town where it’s located to end a dispute over the hospital’s property tax exemption.

The settlement between Atlantic Health System, which owns Morristown Medical Center, and the municipality of Morristown comes after a New Jersey tax judge ruled in June that the hospital should not be exempt, concluding that if all hospitals operate the same way, “then for purposes of the property-tax exemption, modern nonprofit hospitals are essentially legal fictions.”