title: There's no profiting from a joint venture misadventure.
abstract: In St. David's vs. IRS, a not-for-profit health system effectively challenged the IRS's determination that the system should be disqualified from tax exemption because it had entered a 50/50 joint venture with a for-profit system. The court decisions in St. David's, coupled with a recent IRS ruling, Revenue Ruling 2004-51, provide insight into how a not-for-profit hospital can structure such a joint venture to avoid jeopardizing its tax-exempt status.
authors.affiliation: Health and Hospital Law Practice Group, Sills Cummis Epstein & Gross, PC, Newark, NJ, USA. gherschman@sillscummis.com
authors.forename: Gary W
authors.initials: GW
authors.lastname: Herschman
mesh_terms: D005377:Financial Management, Hospital / Q000379:methods*; D006759:Hospital-Physician Joint Ventures / Q000191:economics / Q000331:legislation & jurisprudence / Q000458:organization & administration*; D006777:Hospitals, Proprietary / Q000191:economics; D006788:Hospitals, Voluntary / Q000191:economics* / Q000331:legislation & jurisprudence; D009935:Organizational Affiliation / Q000191:economics / Q000331:legislation & jurisprudence / Q000458:organization & administration*; D019464:Tax Exemption / Q000331:legislation & jurisprudence*; D014481:United States