From the Richmond Palladium-Item:
Wayne County will no longer contest the property tax exemptions for some Reid Hospital properties that were pending before the Indiana Board of Tax Review.
Wayne County Commissioner Denny Burns said Friday the decision not to contest the hospital's exempt status for former physicians' offices involved both the legal cost and the possible loss of good will with the hospital.
Reid Hospital once received $400,000 a year from the county to pay for indigent care, Burns said. The county stopped those payments a few years ago, but the hospital continues to provide the care, he said.
Reid will also help the county with the cost of its in-patient care for inmates who are hospitalized, Burns said. The county formerly paid the full charge, but the hospital now will bill the county at the Medicaid rate, which is substantially lower, Burns said.
"Reid does pay more than $270,000 in property taxes," Burns said. "Their good will wasn't worth what we decided wasn't a very good chance of winning in court. We learned a lot from other counties who weren't effective in these cases."
In 2011 the Wayne County Property Tax Assessment Board of Appeals denied exemptions on eight parcels owned by Reid Hospital and Health Care Services Inc. In October the hospital appealed the county board's denial to the Indiana Board of Tax Review.
The total assessed value of the property under appeal was $1.12 million, on which about $50,000 in taxes would have been paid for the last two years, county officials said.
...
Burns said concerns over the conversion of private medical practices into hospital-owned practices and its impact on property taxpayers is a statewide issue and should be taken up by the Legislature. Kinyon said Indiana has about 100 hospitals that are all in the same situation with physician practices.
"If there's going to be an interpretation of policy to handle hospitals differently than other not-for-profits, it ought to be discussed at the state level," Kinyon said.
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012204220327
