Lease
Arrangement
IHC
H
H
H
ForProfit
En-ty
IntermountainHealthCareFactors
1)  Purposeofen-ty=provideservicestoothersw/o
expecta-onmaterialreward
2)  Whetheren-tysupportedbydona-ons/giHs
3)  Whetherrecipientsof“charity”payforassistance(inwhole
orinpart)
4)  Whetherincome(fromallsources)exceedsopera-ngand
maintenanceexpenses
5)  Whetherbeneficiariesof“charity”arerestrictedor
unrestricted;ifrestricted,whetherreasonablegiven
charitableobjec-ves
6)  (a)whetherdividends/otherfinancialbenefit/assetsupon
dissolu-ongotoprivateinterests
(b)whetheranycommercialac-vi-esaresubordinateor
incidentaltocharitableac-vi-es
7)  Lessensagovernmentburden
Tax-ExemptStatus–StateApproaches
(1)  Howishospitalorganized?
–  Corporatepurpose=charitablepurpose
–  Nopor-onofearnings/assetstoprivateindividualsoren--es,
includingupondissolu-on
(2)  Musthospitalprovidecharitycare?
–  Whatcountsascharitycare?
–  Minimumquan-tyvs.policyofcharitycare?
(3)  Othercommunitybenefits
–  Whatcounts?
–  Howmuchmusthospitalprovide?
(4)Otherfactors
–  Looklikeabusinessoracharity?
•  Whetherincome>expenses
•  Whethercommercialac-vi-essubordinatetocharitableac-vi-es
–  Whetherbeneficiariesofcharityarerestrictedandifso,if
restric-onreasonablegivencharitablepurpose
–  Lessensgovernmentburden
InternalRevenueCode§501(c)(3)
1)  Servesa“charitable”purpose[orreligious,
scien-ficoreduca-onalpurpose]
2)  Nopartofnetearningsinurestothebenefitof
anyprivateshareholderorindividual;
3)  Nosubstan-alpartofac-vi-esconsistsof
certainac-vi-esaimedatinfluencing
legisla-on;and
4)  Maynotpar-cipateorinterveneinanypoli-cal
campaignonbehalfofanycandidateforpublic
office