Court dismisses Banner case.(The Week in Healthcare; Banner Health System)

Modern Healthcare, August, 2003

Byline: Patrick Reilly

How much claim states have on the charitable assets of healthcare systems remains an unresolved issue after a North Dakota court's ruling last week in a case involving Banner Health System.

District Court Judge Georgia Dawson in Cass County, N.D., tossed out the state's bid to gain the proceeds from Banner's 2002 sale of a hospital and five nursing homes there, saying Attorney General Wayne Stenehjem hadn't proven the existence of an implied charitable trust agreement between Banner and the state.

At deadline, a spokeswoman for the attorney general's office would only say that the decision was being reviewed. However, an outside lawyer who has followed the case said he expected the state to file an appeal.

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