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Supreme Court of Pennsylvania
September 12, 1984, Argued ; February 13, 1985, Decided
No Number in Original
[*7] [**1308] OPINION
This action arose when appellant, Hospital Utilization Project ("HUP"), filed a petition for refund of sales and use taxes with the Board of Appeals of the Department of [**1309] Revenue on June 16, 1980, following a determination by the Department of Revenue that HUP was not entitled to a charitable exemption from imposition of the taxes. In early December, 1980, the Board of Appeals concluded that HUP was neither a charitable organization nor engaged in manufacturing, and issued a decision denying the petition for refund. On petition for review of that decision, the Board of Finance and Revenue entered an order on May [***2] 27, 1981 affirming the denial of the petition for refund. Upon consideration of HUP's petition for review of the order of the Board of Finance and Revenue, the Commonwealth Court, 75 Pa.Cmwlth. 154, 461 A.2d 894 (1983), affirmed that order reaching the same conclusions as the Board of Appeals of the Department of Revenue. HUP then timely appealed to this Court which has jurisdiction pursuant to Section 723 of the Judicial Code, 42 Pa.C.S. § 723(b).
In the early 1960's the Medical Societies of Allegheny, Beaver, Lawrence and Westmoreland Counties perceived the need for a uniform system for the collection and collation of statistical data on area-wide hospital utilization. In 1963 an association of hospitals known as the Hospital Council of Western Pennsylvania ("Hospital Council") voluntarily embarked upon HUP under which participating hospitals prepare a statistical abstract of the medical record of each patient upon discharge. The statistical abstract includes such information as admission and discharge data, medical diagnosis, treatment, length of stay and the treating physician. This information is then collated and computerized, and complete reports are disseminated [***3] to area hospitals so that each institution can compare its utilization [*8] statistics for particular diagnosis with those of other hospitals. 1
From 1963 through 1966 the Hospital Council funded HUP with charitable contributions from the Allegheny County Medical Society Foundation, thirty-three (33) private and corporate foundations and "in-kind" donations of computer services from Blue Cross of Western Pennsylvania. By 1967, however, HUP [***4] had become financially secure and the Hospital Council and the medical societies withdrew from the project. The hospitals themselves then undertook to fund HUP through direct payment to HUP for its services. Thus, from 1967 to the present, HUP has been solely financed through a fee-for-services arrangement.
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
507 Pa. 1 *; 487 A.2d 1306 **; 1985 Pa. LEXIS 297 ***
HOSPITAL UTILIZATION PROJECT, Appellant, v. COMMONWEALTH of Pennsylvania
Prior History: [***1] No. 50 W.D. Appeal Dkt. 1983, Appeal from the Order of the Commonwealth Court dated June 21, 1983, entered at No. 1596 C.D. 1981, affirming the Order of the Pennsylvania Board of Finance and Review dated May 27, 1981, entered at No. RST-4370, 75 Pa. Commw. 154, 461 A.2d 894 (1983)
public charity, exemption, charitable, charitable organization, manufacturing, taxation, patient, utilization, qualifies, nonprofit, personal property, gratuitously, institutions, statistical, healthcare services, use tax, sales
Tax Law, State & Local Taxes, Sales Taxes, General Overview, Exempt Sales, Use Taxes, Governments, Legislation, Interpretation, Personal Property Taxes, Exemptions, Requirements for Exempt Status, Estate, Gift & Trust Law, Gifts, Personal Gifts, Income Taxes, Corporations & Unincorporated Associations, Limitations on Taxation, Healthcare Law, Requirements for Tax Exempt Status, Charitable Purpose Requirement, Nonhospital Organizations, Business Administration & Organization, Tax Exemptions, Business & Corporate Law, Nonprofit Corporations & Organizations, Contracts Law, Personal Property, Limitations on Tax