Jury Allows Hospital to Retain Tax-Exempt Status

By Elizabeth Schwinn

A nonprofit hospital may retain its tax-exempt status despite its partnership with a for-profit hospital company, a jury has ruled.

St. David's Health Care System, in Austin, Tex., may retain its nonprofit status even though half of the directors on its governing board were appointed by its for-profit partner, HCA, said the jury that heard the case in the U.S. District Court for the Western District of Texas.

The decision is the third round in the

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