The complicated issue of valuing not-for-profit hospitals that are sold to for-profit institutions ("How much?" Feb. 12, p. 85) also has important ramifications with regard to property taxes.
Following the sale of a hospital, assessing jurisdictions often base the hospital's new assessed value on the selling price or the business value of the hospital rather than calculating the fair market value of the land and improvements. This common practice often leads to excessive assessments since the fair market value of the land and the building is often substantially less than the business value of the entire hospital.
Hospital chief financial officers should check their facility's assessed value carefully to ensure they pay only their fair share of property taxes.
ROBERT N. ROSEMONT
Rosemont & Associates