UPMC's tax-exempt status faces challenge from city mayor

In Pittsburgh, Mayor Luke Ravenstahl is publicly challenging the tax-exempt status of regional medical giant University of Pittsburgh Medical Center (UPMC). "They haven't been operating as a charity and it's time that this community step up in that regard. The reality of the situation is the taxpayers ... are currently subsidizing UPMC's non-profit status," Ravenstahl said yesterday at a press conference, the Pittsburgh Post-Gazette reported.

A Pennsylvania Supreme Court decision last year that reaffirmed tax-exempt organizations must meet five criteria outlined in a previous court case, including operating without motive for profit, convinced the mayor to go after UPMC's tax-exempt status. Pittsburgh would gain $11 million in property tax revenue and its public schools could get $14 million if the hospital paid taxes, the Post-Gazette noted. Article