Evening star., 1942-02-02
Higher Patient
Costs Seen in
Hospital Tax
Policy Of DefouIt
Is Suggested as
Showdown on Issue
(This ts the second OF three ar
tIcies discussing the taxation OF
Washington hospitals. The third
p4u appear tomorrow.

IL.
I'VE can't survive II We are
obliged to carry q new tax burden"
An oficial Of one Of Washing
tons voluntary hospitals made that
statement when asked about possible
effects Of restoring hospital prop
critics to the realty tax rolls. His
view was shared by a number OF
fellow executives. The remainder
would not predict fatty their insti-
tutions could not shoulder such an
additional financial load but said
higher charges for services would
be inevitable and might produce
unforeseen reactions.
Few private hospital executives
openly expressed bitterness toward
the District authorities respon-
sible for re-examination OF tax
exempt lists or even challenged
vigorously their new Interpretation
of the pertinent statuatory pro-
visions. Most merely confessed be-
Uilderment and anxiety at an about
face from a point of view upon
which hospitals had relied for many
years in working out their eco
nomic problems. They cannot hope
to make satisfactory adjustments
without some type of outside as
sistance, it was agreed.
Default Policy Advanced.
One hospital official said he in
tended to recommend to his board
that 1t default on tax bills II the
time comes for actual demand for
payment. He said he also planned
to suggest joint action along this
line to those occupying similar ca
pacities in other institutions. The
oficial explained this would serve
as a last resort for forcing the issue
and determining whether the
municipality would take over the
properties and put them up for sale
OF seek positive relief for voluntary
hospitals from Congress.
In appealing to the Commission
ers, the institutions have offered
data on the extent Of charity work
done and contended Congress in
tended to include their type Of op-
Grafton under the exemption ac-
corded charitable establishments.
For example, the protest Of the
Central Dispensary and Emergency
Hospital quoted from the report OF
the Real Estate Tax Exemption
Board and declared:
your committee seems to base its
conclusion that the hospital Is not |
providing needy persons gratuitously |
with medical care and treatment |
and with medicines on the fact
that the corporation is paid for all
services rendered Every charitable
or welfare agency which supplies
gratuitous service Of any sort to
needy persons necessarily must re-
ceive from some source the funds
which make such service possible"
View Of G. W. Presented.
George Washington University
pointed out it had enjoyed exemp-
ton for the property of its medical
school and adjacent hospital under
. code provision relating to prop
erty that Is used for educational
purposes that is not used for private
gain" advising:
"The medical school (teaching) |
hospital, an integral part Of the
organization and equipment Of the
medical school, continues to be used
daily by the medical school as a
teaching hospital"
Casualty Hospital sent brief let
ter of protest over signature Of its
president, Samuel H. Rogers, point
ing out 1t always had considered
itself IAN eleemosynary institution"
not operated for profit, and believed
itself eligible for exemption because
of this.
Recent informal individual ex-
pressions give a further indication
OF the hospitals reaction.
Charles D. Drayton, president of
Children's Hospital, called the al
tered policy a formidable threat"
to continued operation of that insti-
tuition and pointed to a net loss of
more than $1,000 on its operation
last year. Mr.. Drayton said the
immediate future was not bright,
even without the addition of realty
taxes. in view of increasing costs
and need for plant Improvements.
I'VE are threatened from every
angle" he declared.
Endowment Dependence Cited.
II. P. Blair, president of the Ex-
ecutive Committee Of Episcopal Eye,
Ear and Throat Hospital, said the
taxes would be "a very serious item"
and that the institutions large dis
pensary service, considered q real
rnynYnIIritv need was heino yooip