The recent decision by the Illinois Supreme Court regarding tax exemption for hospitals is troubling for the already volatile and uncertain future of many hospitals that are facing increasing difficulties in the current economic market. The Illinois Supreme Court held that Provena Medical Center in Urbana does not provide enough charity care to qualify for the tax exemption provided for hospitals that care for uninsured and poor patients without generating a profit or collecting fees.[1] The decision has generated significant criticism for relying on old precedent, failing to take into account current economic conditions, and for failing to provide clear guidelines for nonprofit hospitals that want to qualify for tax exemption in Illinois.[2] The implications of this decision while not precisely known can have wide ranging consequences for hospital financing and for access to healthcare for low income and uninsured individuals. What are hospitals required to do to quality for tax exemption in Illinois? What financial implications does this have on nonprofit hospitals? What implications does this have on patients? Will this decision effectively end charitable exemptions for nonprofit hospitals? This article will attempt to briefly outline the issue and provide the possible policy implications of this decision. [More]

In the current financial crisis borrowers are finding it increasingly difficult to access capital for their investments. This is affecting one of the most important industries in our society, health care. Hospitals are a vital part of the health care industry and they are facing especially hard times in today’s economy. It is not a surprise to many people that hospitals are facing financial difficulties. Hospitals have consistently faced financial difficulties even in a good economy. However, the current credit crisis is affecting hospitals more than any other organization because of the high levels of uninsured seeking health care services, low reimbursement rates from Medicaid and Medicare, and staff shortages. Now more than ever before hospitals are facing increasing debt and are unable to gain more capital or refinancing their existing loans because it is more difficult to obtain credit. As a result, hospitals all over the country are filing bankruptcy and closing down. This is having a devastating affect on the access and quality of health care for many Americans. This article will examine why hospitals are facing financial difficulties and propose solutions to the problem by drawing upon examples of hospitals that are performing well in the current economy. [More]

As the economy is getting worse homeowners residing in common interest communities are struggling to pay their monthly assessment fees. As a result, many property owners are unable to pay their fees and are accumulating monthly debts. Homeowners associations are faced with difficult choices of how to keep the community alive but also keep members in their homes. In many states, homeowners associations are pursuing non-judicial foreclosure against property owners who have not paid their assessment fees. Property owners are outraged because they are at risk for losing their primary residence and largest investment. Legislatures in different states have reacted by enacting laws that limit the power of homeowners associations to pursue foreclosure. First, this article will explore the law governing common interest communities and homeowners associations. Second, this article will address and criticize various state responses to this problem. Finally, this article will propose a solution that attempts to address the concerns of the homeowners associations and their members. [More]