Pennsylvania’s Not-for-Profit Hospitals Face Challenges to Their Tax-Exempt Status
Provisions of the Affordable Care Act place additional requirements on hospitals seeking to maintain federal tax exemption. In addition, a 2012 state Supreme Court decision has made Pennsylvania’s not-for-profit hospitals and health systems vulnerable to challenges to their exemption from state and local taxes.
In addition to helping its members to comply with the Affordable Care Act, HAP is working on the state legislative front to uphold the tenets of Pennsylvania’s vanguard Institutions of Purely Public Charity Act (Act 55 of 1997) to reduce the likelihood of challenges to hospitals’ tax status. Doing so will free essential hospital resources to focus on their patients and communities.