Federal Tax-Exemption Requirements for Joint Ventures between Nonprofit Hospital Providers and For-profit Entities: Form over Substance?

Authors

Gary J. Young, Boston University School of Public Health

Abstract

This article discusses the IRS rule on hospital joint ventures and related legal developments. The central thesis is that the IRS's emphasis on operational control is misplaced from both a legal and a policy perspective, and reflects a decidedly strong preference for the form of a joint venture's governance over the substance of its charitable and community service activities. More specifically, the article challenges the IRS position that the rule is a corollary of existing tax law principles. Additionally, social science research is presented to demonstrate that the rule is not likely to promote, and may in fact undermine, United States health policy objectives.

First Page

327

Recommended Citation

Gary J. Young Federal Tax-Exemption Requirements for Joint Ventures between Nonprofit Hospital Providers and For-profit Entities: Form over Substance?, 13 Annals Health L. 327 (2004).
Available at: https://lawecommons.luc.edu/annals/vol13/iss2/3