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When you hear the term taxation, you might assume it is concern for accountants, but it is as well a concern for health administrators today. When shifting the discussion from patient-centered issues to the facility, you must understand that facilities must operate under state laws, and it is those state laws that give the enterprise the authority to exist. As such, when a facility declares that the nature of the facility is "charitable", the state has an interest in ensuring the facility is meeting its obligation under this status. The enormous advantages and tax benefits such institutions gain in being termed such is the reason for this degree of interest.

Look to your community and find at least two charitable hospitals and compare the two using information you can find through the internet:

• What was it about these facilities that compelled you to share them with the class?

• Does the community view the facility as charitable?

• Does the facility rise to the status of charitable?

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