![]() ![]() Meanwhile, attorneys Kennedy and Johnson noted that the Chester County decision could impact nonprofit health care organizations such as skilled nursing facilities, retirement communities and home health care enterprises. Since 2018, the district has spent more than $200,000 on legal fees mounting the unsuccessful challenge, the Pottstown Mercury reported. Pottstown Hospital’s removal from the tax rolls costs the Pottstown School District roughly $924,000 a year in property tax revenue. ![]() The hospital’s continued absence from the property tax rolls also costs the borough more than $200,000 per year in property tax revenues. It’s a lot of money for communities and hospitals.įor example, Pottstown Hospital’s removal from the tax rolls costs the Pottstown School District roughly $924,000 a year in property tax revenue. A 2018 estimate put Berks County’s lost revenue from Tower at about $11 million. It is unclear how long those agreements are in effect. I am confident that regardless of the outcome of the pending litigation, the new Tower Health leadership will treat the borough of West Reading and its residents fairly.”Ī representative of Wyomissing School District could not be reached for comment.Īccording to a 2018 Reading Eagle article, Tower Health makes an annual payment in lieu of taxes of about $610,000 per year to West Reading and contributes $408,500 in financial support and professional services to the school district. “Throughout COVID-19 Tower Health was an excellent partner that took extraordinary measure to assist the borough to ensure the well-being of its employees and residents. ![]() Gombach West Reading borough council president. “We are closely following the tax assessment litigation involving Tower Health Hospitals,” said Jack R. Officials from West Reading, where Tower’s flagship Reading Hospital is located, are also interested. We will continue to follow this case as it is appealed.” ![]() “Up until now, they have mostly been decided in favor of the hospitals. “HAP has been following several of these cases,” Migdail said in an email. Migdail said the association has seen an uptick over the past few years in municipal governments and school districts challenging the tax-exempt status of hospitals as they face funding challenges and look to bring in additional revenue. “But we have been closely following this issue in general and can offer some context.” “We aren’t able to comment on the specifics of this case as we haven’t been directly involved at this point.” said Liam Migdail, director of media relations at HAP. The Hospital Association of Pennsylvania is also following the case closely. “If you want to cut your property taxes in half, put the other half of properties on the tax rolls.”Īs it has in similar cases, PSBA will likely file a friend of the court brief as the case is appealed. “The (charitable) exemption has really gotten out of hand,” said Stuart Knade, chief legal officer of the PSBA. Representatives of the Pennsylvania School Board Association and the Hospital Association of Pennsylvania agreed the decision has their attention. Johnson of Berwyn-based White and Williams LLP, called the Chester County ruling “a shot across the bow” of nonprofit hospitals throughout the state. Tower has praised the Montgomery County ruling and criticized the Chester County decision.Īttorneys William D. The district had argued that pay incentives for executives and a push for higher compensation for former CEO Clint Matthews at Tower was more in-line with for-profit companies. Noting the money the hospitals transferred to Tower, Judge Jeffrey Sommer ruled the hospitals are more aligned with for-profit companies.Īlso in October, a Montgomery County judge ruled the opposite from the Chester County judge - that Pottstown Hospital can continue to be exempt from property taxes, rejecting the Pottstown School District’s challenge to the status. In October, a Chester County judge rejected Tower’s big for property tax exemptions for three of its Chester County hospitals. The Chester County cases involving Phoenixville, Brandywine and Jennersville hospitals and another tax assessment dispute involving Pottstown Hospital are on appeal. Nonprofit hospitals and municipalities and school districts across Pennsylvania are closely watching the tax assessment cases involving Tower Health. ![]()
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