When you hear the term taxation, you might assume it is a concern for
accountants, but it is also a concern for health administrators today.
When shifting the discussion from patient-centered issues to the
facility, you must understand that facilities must operate under state
laws, and it is those state laws that give the enterprise the authority
to exist. As such, when a facility declares that the nature of the
facility is “charitable” the state has an interest in ensuring the
facility is meeting its obligation under this status. The enormous
advantages and tax benefits such institutions gain in being termed such
is the reason for this degree of interest.
What was it about these facilities that compelled you to share them with the class?
Does the community view the facility as charitable?
Does the facility rise to the status of charitable?