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You are the administrative director to the Board of Directors of a local not-for-profit community hospital. The board has determined that it will enter a joint venture between its hospital and a for-profit organization. The board plans to turn control of its land and property (building and equipment) to the for-profit organization, but control of the hospital’s operations will remain not-for-profit. The new joint venture agree to provide charity care consistent with the not-for-hospital’s mission and vision.

What are the tax-exempt implication for the two organizations?

Can the not-for-profit hospital maintain its property tax-exempt status while the for-profit owns the land and property?

Would you advise the board of directors on a different method of developing the joint venture?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93091717

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