California Rules Non-Profit Hospitals In Mergers Must Meet Charity Care Obligations

On April 13, 2018, the California Office of the Attorney General (OAG) ruled that three non-profit hospitals involved in mergers must meet existing charity care obligations set in the merger approval. The three hospitals—Emanuel Medical Center in Turlock, Mission Community Hospital in Panorama City, and University of Southern California's Verdugo Hills Hospital in Glendale—had submitted requests to lower their charity care obligations.

California law sets a minimum level of charity care that each hospital must provide to maintain its non-profit status for state tax exemption. However a separate law allows the state attorney general to . . .