Non-profit hospitals angered by charges

Non-profit hospitals reacted with dismay to the news that lawmakers in Washington are questioning their tax-exempt status. Yesterday, the House Ways and Means Committee began an investigation into the issue, saying the public deserves to know how its tax dollars are being spent. That follows word of a similar development in the Senate, where Charles Grassley (R-Iowa) opened his own investigation yesterday.

Non-profit hospitals account for about 60 percent of the tax exempt sector, a fact which defenders say explains why they are being targeted. IRS Commissioner Mark Everson said yesterday that the agency would increase its scrutiny of tax-exempt hospitals, adding that in the past, "our audit rates have been way too low."

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