What’s New in Health Law

Hospital Settles Property Tax Exemption Case

As being reported by national and local sources, Morristown Medical Center, which is part of the Atlantic Health System, has agreed to pay $15.5 million, including fines and interest, to the municipality of Morristown, New Jersey, thereby settling the AHS Hosp. Corp. v. Town of Morristown hospital property tax exemption case that we wrote about in our July 16, 2015 Health Law Express.  In addition, the Medical Center will begin paying annual taxes of roughly $1 million. This settlement could have an impact on the tax-exempt status of other not-for-profit hospitals, certainly in New Jersey, but quite possibly nationwide as cities look for ways to plug holes in their budgets.

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Question of the Week

We are currently in the process of adopting new Medical Staff Bylaws. A member of the Medical Staff questioned whether language that was included in the draft Credentials Policy indicating that the appropriateness of utilization patterns would be considered when granting privileges would constitute “economic credentialing.” Does it?

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