Law allowing most hospitals to avoid property taxes questioned

MADISON, Wis. (AP) -- Ninety-five percent of Wisconsin's hospitals benefit from a state law that allows them to avoid paying any property taxes.

A report released today shows the exemption kept 70 (m) million dollars off the tax rolls for local governments in 2005.

The exemption is legal and defended by the Wisconsin Hospital Association. The group's vice president Brian Potter says hospitals give back far more than that in free care.

A report for 2005 shows hospitals provided 160 (m) million in free care, in addition to losing more than 550 (m) million on Medicaid patients, nursing home care and other programs.

Even so, the report from the Institute for Wisconsin's Future shows the state's hospitals reported more than 830 (m) million dollars in profits in 2004.

The group's research director Jack Norman says just because hospitals do charity work doesn't mean they should be exempted from paying property taxes.

Copyright AP