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Springfield, Ill. - Turning up the heat on talks aimed at making sure nonprofit hospitals do enough charitable work, Illinois Gov. Pat Quinn stuck to his Thursday deadline and authorized the Department of Revenue to resume decisions that could strip some health care institutions of valuable tax exemptions.

The Democratic governor's action came a day after negotiations failed to reach a compromise on how much charity care hospitals must provide to earn freedom from local taxes. The state had refrained from decisions on exemptions as negotiations proceeded.

Quinn's move further complicates his relationship with the powerful Illinois Hospital Association, which last month said it would vigorously oppose the governor's proposed $2.7 billion in cuts to projected Medicaid spending.

Illinois Hospital Association President Maryjane Wurth said Thursday that further rulings on hospital tax exemptions will distract from finding a legislative solution on the charity care issue. In a statement reacting to Quinn's announcement, Wurth said her 200-member group appreciates the governor's intention to restart discussions on possible new legislation that could be passed by the Legislature this spring.

But Wurth said the group is "extremely concerned" about rulings from the Department of Revenue.

"Requiring nonprofit hospitals across the state to pay property taxes would undermine patients' access to care, increase health care costs and damage an already fragile health care system," Wurth said in the statement.

Representatives of hospitals, local governments and advocates will reconvene talks early next week, said Quinn spokeswoman Brie Callahan, in an effort to find "a legislative solution that is both constitutional and recognizes the importance of hospitals in our communities and the need for widespread access to care for the uninsured."

The wrangling over hospital tax exemptions stems from a 2010 Illinois Supreme Court ruling that an Urbana hospital wasn't doing enough charity care to qualify for a tax exemption.

Last year, the Department of Revenue cited the 2010 ruling when denying property tax exemptions to three hospitals: Northwestern Memorial's Prentice Women's Hospital in Chicago, Edward Hospital in Naperville and Decatur Memorial Hospital in Decatur.

Excerpt from:
Quinn Lifts Hold on Hospital Tax Rulings