Illinois takes a stand on nonprofit hospitals

Last April, I commented on the increasing problem of nonprofit hospitals shirking their duty to provide some percentage of services for free.

Yesterday, The Chicago Tribune described the current situation in Illinois, where this issue recently came under the spotlight. Public hospitals turned away patients who couldn't pay and then received statewide attention. Now, it has become a state issue and, in Illinois, it will be up to the court to decide how much charity a nonprofit hospital must provide to maintain it's tax-free status. Though this is a positive step because it will draw attention to the problem and possibly encourage hospitals in other states to take a closer look at their annual charity rates in comparison with their bottom line, it is compounded by the fact that the courts have no precedent for how to set a fair "charity quota."