August 17, 2011
Kewanee Hospital is aware of the Illinois Department of Revenue’s decision to deny property tax exemptions to three hospitals, but also knows the state will consider the remaining applications for tax exemption – including one from Kewanee Hospital – separately and on their own merits.“Kewanee Hospital has clearly demonstrated its commitment to serving all patients in our community and providing access to quality health care,” said Margaret Gustafson, Chief Executive Officer at Kewanee Hospital. “I remain hopeful that the officials at the Department of Revenue will recognize that fact and allow us to retain the tax exemption we have received for more than 90 years.”
As a 501(c)3 charitable organization, Kewanee Hospital remains focused on its mission “To Improve the Health and Care of Those We Serve.” Kewanee Hospital provided nearly $9 million in community benefits for 2009 and 2010, which far outweighs the $1 million in property taxes (2009 and 2010) that the hospital has been required to pay.
If Kewanee Hospital had to pay property taxes each year, it would jeopardize the long-term viability of the organization and would necessitate cutting programs, services, and positions to balance the deficit caused by the tax assessment. Without the hospital, community members would have to travel significantly greater distances to receive necessary and life-saving health services.
Many rural Critical Access Hospitals (CAH), including Kewanee Hospital, have built new facilities on what was previously farmland, as noted by Maryjane Wurth, president of the Illinois Hospital Association. These new facilities are needed to meet the future challenges of healthcare delivery in their communities. Now that their property tax exemptions are on hold, these CAHs are now paying hundreds of thousands of dollars a year, stretching their financial sustainability to the maximum.
“Kewanee Hospital is a not-for-profit charitable organization,” stated Lynn Fulton, Chief Operating Officer at Kewanee Hospital. “Like many hospitals across the country we welcome all patients each and every day--regardless of their ability to pay, we keep emergency services open 24/7, and we continue to reinvest in our community through the provision of needed health care services.”
In addition to providing local access to healthcare, Kewanee Hospital supports the health and wellness of the local community through free sports physicals, immunization programs, health screens, community-wide disaster preparedness, hospital-based education programs and health awareness activities.