Pennsylvania Hospitals Lose Bids for Nonprofit Tax Break (1)

The “eye popping” compensation paid to executives at four hospitals owned by Tower Health LLC disqualifies the nonprofits from charitable tax-exempt status, a Pennsylvania appeals court ruled in four related cases.

Pottstown Hospital LLC, Phoenixville Hospital LLC, Brandywine Hospital LLC, and Jennersville Hospital LLC in Montgomery and Chester counties sought a property tax exemption for tax years 2018 through 2021. A Montgomery County trial court granted Pottstown Hospital the exemption, but the other hospitals lost at the trial court level in Chester County.

The Pennsylvania Commonwealth Court ruled Friday that the hospitals failed to prove they’re entitled ...