Health & Wellness

Experts Invited to Newark City Council Meeting to Discuss Tax-Exempt Status of Non Profit Hospitals


Central Ward Councilwoman Gayle Chaneyfield Jenkins announced today that she has requested two experts to appear before the Newark City Council on Feb. 23 at 10:30 a.m. to discuss the tax-exempt status of non-profit hospitals in New Jersey.

The experts are:

  • Martin Allen, the tax lawyer who represented the Town of Morristown in its successful lawsuit against Morristown Medical Center in which the hospital agreed to pay $15.5 million in back taxes and penalties, plus annual property taxes of about $1 million a year from 2016 to 2025.
  • Michael Darcy, the executive director of the New Jersey League of Municipalities, which has opposed legislation requiring non-profit hospitals to pay a “community service contribution.”

Chaneyfield Jenkins said she has also invited city Tax Assessor Romal Bullock and Business Administrator Jack Kelly to the Special Conference meeting to hear from the experts and participate in the conversation.

Sign Up for E-News

The legislation, which had the support of the New Jersey Hospital Association, was pushed through the lame duck legislature, but pocket vetoed by Gov. Christie. The legislation was drafted in response to the Morristown ruling in an effort to avoid a rash of lawsuits from municipalities that are home to non-profit hospitals.

Chaneyfield Jenkins, who opposed the legislation, said she felt it was important to hear from the lawyer who worked on the Morristown case and better understand the League’s opposition to the legislation.

“The hospital lobby tried to shove a statewide solution down our throats during the lame duck session,” said Chaneyfield Jenkins. “The governor’s pocket veto bought us some time to explore this issue in depth to determine what’s in the best interest of our residents.

“This conference will allow us to hear whether a statewide solution as proposed was good for Newark or whether we should explore challenging the property tax exemptions of the non-profit hospitals within our borders,” Chaneyfield Jenkins said. “We’ll be in a better position to know what solution to support once we hear from the experts.”

The issue has major repercussions in Newark, which is home to three hospitals – University Hospital, Newark Beth Israel Medical Center and Saint Michael’s Medical Center. University Hospital, as a state-owned institution, was exempted from the legislation. Saint Michael’s is awaiting approval from the state to be purchased by Prime Healthcare Services, a for-profit company. If the sale is approved, Saint Michael’s would automatically lose their tax-exempt status and would begin paying property taxes.

Under the legislation that was pocket vetoed, non-profit hospitals would have paid a community service contribution of $2.50 per licensed bed per day. Under that formula, Newark Beth Israel, which has 596 licensed beds, would have paid Newark $516,000, which includes subtracting 5 percent that would have been paid to Essex County.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News


He Grew Up In James Baxter Terrace. Today, He Ushers in a Newark Condo Complex

July 19, 2018

NEWARK, NJ - Hassan Keith grew up in the city’s James Baxter Terrace public housing, and now he's come back to unveil a 24-unit condominium complex on Clinton Avenue he helped build. 

Keith teamed up with the NFL's Mike Adams to form the Mid-Atlantic Investment Alliance development company along with two others. Today, they cut the ribbon on the new Lofts at ...

Market Street Patrol Building May Be Named After Late Undersheriff

June 28, 2018

NEWARK, NJ — The death of Essex County Undersheriff Kevin Ryan on June 20 was a "devastating loss" for the department and for the county’s sheriff, Armando Fontoura.

“He was like a son to me. He was always the first one on the scene. He was always there to help. It’s just devastating. There is not much more I can say," Fontoura said in a ...

Girl Scouts Heart of New Jersey Opens Camp DeWitt Conference Center and Activity Building

July 2, 2018

HILLSBOROUGH, N.J. – If you don’t know by now, Girl Scouts is much more than cookies, crafts, and summer camp.

In fact, the Girl Scouts Heart of New Jersey say they should host your next professional business conference, special event, or any other big celebration in which you are looking to seriously impress.

Look no further than Camp DeWitt in Hillsborough, the site of ...

Upcoming Events


Fri, July 27, 10:00 AM

Lincoln Park, Newark

Lincoln Park Music Festival Sustainable Health ...


Thu, August 16, 5:00 PM

Branch Brook Park, Newark

Movies Under the Stars

To Our Current and Future Representatives

July 17, 2018

To Our Current and Future Representatives - Wherever They May Be:

We can never forget we are a nation of immigrants. 

We cannot fall prey to fear, ignorance and anger when we  have been historically driven by freedom and justice. 

We must have the courage and will to fight hate, bigotry and prejudice. 

We must not wake up to what we hoped was a bad dream and ...

A Statewide Solution on Disposable Bags Aids the Fight Against Litter

June 29, 2018

The New Jersey Clean Communities Council (NJCCC) just released the results of a year-long visual litter study that shows that nearly 10 percent of all litter on our roadways and highways is in the form of plastic and paper bags.

There is no doubt that these bags are of significant and ongoing environmental concern, creating an even more difficult job for our clean communities volunteers across ...