The U.S. Justice Department has decided not to appeal an adverse jury verdict in the St. David's Health Care System tax case, despite filing a notice of appeal last month. "It's finally the end of the road," St. David's Chief Executive Officer Carol Clark said. "We are ecstatic." A Justice Department spokesman would not comment on the matter. A jury in March ruled that not-for-profit St. David's, part owner of six-hospital St. David's HealthCare Partnership in a joint venture with for-profit HCA, deserved tax-exempt status. The government's decision not to follow through with an appeal ends a long dispute. The Internal Revenue Service revoked St. David's tax exemption in 2000, arguing that it no longer operated exclusively for charitable purposes because of the then-4-year-old partnership with HCA; the case has been in the courts since. Had St. David's lost, it could have owed nearly $40 million in back taxes, interest and penalties, Clark said. -- by Mark Taylor
U.S. decides not to challenge St. David's verdict
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