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Aug 10 2010

Covenant v. Wauwatosa: A Taxing Decision for Outpatient Clinics

The Wisconsin Court of Appeals today released a decision which potentially threatens the tax-exempt status of hospital outpatient departments throughout the state. In this case, Covenant Healthcare System, Inc. v. City of Wauwatosa, the Court of Appeals determined that the St. Joseph Outpatient Center in the City of Wauwatosa (the “SJOC”) constitutes a “doctor’s office” and therefore is ineligible for property tax exemption under Wisconsin law. In reaching this decision, the Court of Appeals essentially rejected the trial court’s analysis of the role of outpatient medical services in a contemporary hospital setting. Read more...