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Not-for-profit hospital’s tax exemption case could signal trouble for others
Modern Healthcare

Many not-for-profit hospitals across the country could potentially lose their tax exemption if they became subject to the same type of reasoning that recently led a New Jersey court to erase one hospital’s property-tax exemption in that state, experts say. A New Jersey tax court decided in June that because Morristown (N.J.) Medical Center operates, in many ways, like a for-profit business, it should not be exempt from property taxes. Atlantic Health System and its facility brought the lawsuit against the municipality of Morristown after it denied, for several years, the medical center’s claims for property-tax exemptions.