From AP - News Headlines -

Provena Pays More Than $8 Million in Property Tax Funds, But Protests Five Years’ Worth

Property tax money owed by Provena Covenant Medical Center is now in the hands of Champaign County.

County Treasurer Dan Welch received the $8-point-8 million check Thursday morning. An appellate court last week sided with taxing bodies, meaning the hospital owes the funds for tax years 2002 thru 2008. But Welch notes Provena is still fighting the court's decision regarding 2004 onwards. In October, an administrative law judge will determine whether about $6-point-6 million can be released to taxing bodies. But Provena could still take the decision to appellate court.

Welch says that means taxing bodies will likely want to hold off on using that $6-point-6 millon, but they could use just over $2 million from years the hospital is not contesting for taxing bodies like Urbana's school District and Champaign County. Urbana Mayor Laurel Prussing says those funds would come out of the city's tax increment financing district, which would first receive that money. "Smaller units really do need the money," said Prussing. "I don't think it would be right for the city to try to glom onto it. These are people that we work with continuously, so I think the fair thing to do is just give the money back as quickly as we can. And we have our legal council looking into exactly what is the proper way to do this." Prussing says it's 'unfortunate' that Provena is dragging this case out.

Meanwhile, Provena is planning to file for an exemption on its 2010 taxes. Spokeswoman Lisa Lagger issued a statement... noting the hospital provided over $25 million in charitable care in the Champaign Urbana area in the past year, saying those amounts 'clearly represent the value of charitable assets being returned to the community.

Categories: Government, Health, Politics