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Senate bill would hold nonprofit hospitals to community‑benefit promise; hospitals urge alignment with recent reporting rule

2866151 · April 2, 2025
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Summary

Senate Bill 560 would tighten reporting and accountability for nonprofit hospitals' community benefit commitments tied to property‑tax exemptions and create a mechanism to reallocate shortfalls to unaffiliated critical access hospitals; hospitals urged alignment with recent 2023 reporting rules.

Senator Matt Regier introduced Senate Bill 560, calling for accountability from nonprofit hospitals that receive property‑tax exemptions in exchange for community benefit. Regier cited a 2020 legislative audit estimating roughly $146 million in property‑tax exemptions for nonprofit hospitals and said the bill would require reporting and give the Department of Public Health and Human Services authority to create rules and, if a hospital falls short of its community‑benefit commitment relative to its property‑tax…

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