Pennsylvania Hospital Tax Exemption Suit Centers on Affiliates

The Pennsylvania Supreme Court’s review of a decision that a hospital’s affiliates can be considered to determine its eligibility for an exemption to paying property taxes will give the state’s justices a chance to define specific criteria for other nonprofits to follow.

The state justices are set to hear oral arguments Tuesday in an appeal from a Pennsylvania Commonwealth Court ruling that said Pottstown Hospital LLC wasn’t an institution of purely public charity that qualified for the exemption because of the “eye-popping” compensation paid to executives at its parent health system Tower Health LLC, along with 40% bonus ...