How Hospital Nonprofits Structure Themselves Helps Determine How Hard They’re Hit By New Tax Rules
Under the new law, a nonprofit will owe a 21 percent tax on pay exceeding $1 million. But it will owe the tax only on the five highest-paid employees at each tax-exempt entity the nonprofit has registered with the Internal Revenue Service, excluding some doctors.
The Wall Street Journal:
Taxing This High Earner But Not That One: Hospital Nonprofits Wrestle With New Rules
Phoenix-based hospital system Banner Health employed 11 people who earned over $1 million in 2015—the kind of high nonprofit pay Congress targeted in the sweeping tax overhaul enacted in December. But a quirk of the law means Banner likely will owe tax on just five of these executives, while other large nonprofits, such as Michigan-based Trinity Health, could be taxed on more such employees. (Evans and Fuller, 2/6)
In other hospital news —
Georgia Health News:
Hospitals Keep Up Swift Pace Of Mergers, Alliances
The new year is bringing a rash of big hospital deals in Georgia, as health systems look to bulk up in size and add to their medical territory. The first transaction came a week ago, with the completion of Tennessee-based HCA’s acquisition of Memorial Health in Savannah. (Miller, 2/6)
