The Threshold Question

On October 28, 2024 the U.S. Court of Appeals for the Fifth Circuit upheld the decision denying tax-exempt status to Memorial Hermann Accountable Care Organization (MHACO), a non-profit Texas-based accountable care organization (ACO) operating within the Medicare Share Savings Program (see Memorial Hermann ACO Loses Tax Exempt Status). The court’s ruling determined that MHACO was “not organized and operated for the purposes of promoting the social welfare and providing a community benefit” (see Case: 23-60608 Document: 58-1). As a result, MHACO failed to meet the criteria for tax exemption under Section 501(c . . .