For the second time in a year, the Illinois Department of Revenue has upheld the revocation of property tax exemption for an Illinois not-for-profit hospital. In the widely watched tax case, the state today upheld an earlier ruling by the Champaign County Board of Review revoking the state property tax exemption for 474-bed Carle Foundation Hospital in Urbana, Ill.
Last year, the state revenue department upheld a revocation decision by the same county review board of the property tax exemption for 128-bed Provena Covenant Medical Center, also in Urbana, which is owned by six-hospital Provena Health, Mokena.
In explaining its one-paragraph decision, the state said: The property is not in exempt ownership. The property is not in exempt use. At deadline, Carle Foundation spokeswoman Gretchen Robbins said the hospital had not yet seen the decision and would not comment.
Chicago area healthcare financial consultant James Unland said the state affirmed the county review boards objection to the intimate relationship between the not-for-profit hospital, the not-for-profit Carle Clinic Foundation and the 300-physician Carle Clinic Association, a for-profit physician group that operates the hospital and clinics throughout Central Illinois. Theyre basically saying the not-for-profit status of the hospital could potentially be a front to enrich the medical group, said Unland. The Carle Foundation Hospital has the right to appeal to a department of revenue administrative law judge. -- by Mark Taylor