In an interesting news story, it was reported that Partners Health, composed of the MGH, Brigham and Women’s Hospital and many other affiliates, had a record fiscal quarter ending March 31, earning $71 million over last year’s $13 million. Good for them; they do good work and we are proud to have them in the city.
But what do they pay in taxes to the City of Boston given that they are a nonprofit? Not very much. They voluntarily pay $3 million in taxes to the City. Read the report by the City here. Were they to pay as if they were profit-making institutions, these two hospitals alone without their affiliates would pay north of $60 million per year in property taxes.
The City is to be given some credit for finally turning up the heat on these institutions and others, which get away virtually scot-free from paying taxes under a law that dates from 1830(!). By the way, the medical non-profits have lots of company on the academic side: Northeastern, for example, paid only $30,571. in FY 09 to the city (see p. 64 of the City’s report).
More and more cities are demanding more from non-profits in these hard times. See a report in the NY Times.