Intermountain seeks to regain tax status.(Brief Article)

Modern Healthcare, October, 2000 by Hallam, Kristen

Intermountain Health Care's HMO began fighting for its revoked tax exemption in U.S. Tax Court in Washington earlier this month, arguing that it plays an integral part in Intermountain's charitable mission.

At issue in the 2-year-old dispute between the company's HMO, IHC Health Plans, and the Internal Revenue Service is whether the HMO qualified for a tax exemption under the IRS' community benefit standard. That standard, in place since 1989, requires tax-exempt healthcare organizations to provide certain benefits to their communities, such as charity care or research.

Two years ago, the IRS ruled that IHC Health Plans, which reported $95 million in operating income in 1998, is a for-profit business similar to a commercial health insurer and as such...

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