Becker's Hospital Review

October 2016 Hospital Review

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76 CFO / FINANCE 35 NJ Hospitals Sued Over Tax-Exempt Status By Ayla Ellison T he tax-exempt status of 35 hospitals in New Jersey is uncertain due to a flurry of tax appeals filed in the state. In June 2015, a tax court judge ruled Morris- town (N.J.) Medical Center should not be ex- empt from property taxes as it failed to satisfy the legal test that it operated as a nonprofit, charitable organization for several tax years. Following the judge's ruling, municipalities in New Jersey filed tax appeals against 35 non- profit hospitals, according to NJ Advance Me- dia, which cited information from the New Jersey Hospital Association. Two of the 35 cases have been settled. In a resolution approved in June, Trinitas Region- al Medical Center in Elizabeth, N.J., agreed to contribute $250,000 a year to the city from 2016 to 2019. Aer 2019, the hospital and city officials will negotiate a new settlement. Under a settlement reached last month, JFK Medical Center in Edison, N.J., will keep its tax-exempt status and pay a "community ser- vice fee" of $500,000 in 2016 and 2017. e hospital will pay the fee in subsequent years, unless a new agreement is reached, according to the report. Here are the 35 New Jersey hospitals that have faced legal challenges over their tax status. AtlantiCare Regional Medical Center City Campus (Atlantic City) AtlantiCare Regional Medical Center Main- land Campus (Pomona) Bayshore Community Hospital (Holmdel) Capital Health Medical Center-Hopewell (Pennington) CentraState Medical Center (Freehold) Chilton Medical Center (Pompton Plains) Clara Maass Medical Center (Belleville) Englewood (N.J.) Hospital and Medical Center HackensackUMC Palisades (North Bergen) Holy Name Medical Center (Teaneck) Hunterdon Medical Center (Flemington) Jersey City (N.J.) Medical Center Jersey Shore University Medical Center (Nep- tune) JFK Health (Edison) Kennedy University Hospital (Stratford) Monmouth Medical Center (Long Branch) Monmouth Medical Center Southern Cam- pus (Lakewood) Newark (N.J.) Beth Israel Medical Center Newton (N.J.) Medical Center Overlook Medical Center (Summit) Princeton HealthCare System (Plainsboro) Raritan Bay Medical Center (Old Bridge) Raritan Bay Medical Center (Perth Amboy) Riverview Medical Center (Red Bank) Robert Wood Johnson University Hospital (New Brunswick) Robert Wood Johnson University Hospital Hamilton (N.J.) Robert Wood Johnson University Hospital Rahway (N.J.) Robert Wood Johnson University Hospital Somerset (Somerville) Saint Barnabas Medical Center (Livingston) Shore Medical Center (Somers Point) St. Joseph's Wayne (N.J.) Hospital St. Joseph's Regional Medical Center (Paterson) e Valley Hospital (Ridgewood) Trinitas Regional Medical Center (Elizabeth) Virtua Memorial Hospital (Mount Holly) n Indiana Woman Released From Cancún Hospital After Paying $67k Toward Bill By Ayla Ellison A n elderly woman from Lafayette, Ind., was released from a hospital in Cancún, Mexico, after paying $67,000 toward her bill of more than $100,000, according to the Lafayette Journal & Courier. Dixie Stinson traveled to Cancún with her husband for their granddaughter's wedding. Ms. Stinson lost consciousness Aug. 1 and was transported to Amerimed Cancún Hospi- tal. Ms. Stinson needed two operations for blocked arter- ies, and her family said the hospital required them to pay about $55,000 upfront before she could receive treatment. Ms. Stinson has Medicare and AARP insurance, but the hospital did not accept either. Both operations were successful, but Ms. Stinson's daughter claimed hospital administrators refused to release her moth- er until a significant portion of her bill was paid. The bill had grown to more than $100,000. If the family didn't come up with the money, hospital administrators allegedly said they would have Ms. Stinson's husband arrested. After learning of the situation, Rep. Todd Rokita (R-Ind.) en- tered into talks with the U.S. Consulate in Merida, Mexico. Thanks to his efforts, Ms. Stinson was cleared to leave the hospital, according to the report. Ms. Stinson's husband told WISH-TV that the couple ex- pects to owe around $120,000 to the hospital when they return home. Earlier this week, Gabriela Martínez Hernández, a lawyer for Amerimed Cancún Hospital, issued a statement saying the hospital "never has, and never will, refuse to release a nonpaying patient for financial reasons. It is unethical and against the law." Amerimed Cancún Hospital is part of Amerimed Hospital- es, a chain of private hospitals throughout Mexico. Two of the system's facilities in Los Cabos were closed down by Mexican officials earlier this year due to predatory business practices and billing. n

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