30 New Jersey Hospitals Could Be Forced To Shell Out Tens Of Millions In Taxes To These Towns

A landmark settlement could seriously alter the way hospitals and the towns they serve do business with one another.

Indeed, as many as 30 hospitals could be forced to pay tens of millions in property taxes over the next decade because of tax appeals charging that the facilities have for-profit components (see list below).

That's the count of municipalities that filed tax appeals against not-for-profit hospitals in New Jersey by April 1, the New Jersey Hospital Association said.

After years of litigation, Atlantic Health System – parent company of Morristown Medical Center – has already agreed to pay $15.5 million in property taxes over the next decade that makes up for property tax appeals from 2006 through 2015, and covers taxes for 2016 through 2025. The Morristown Council unanimously approved the agreement last fall.

Of that $15.5 million, $5.5 million include penalties and interest to be paid in annual installments over the next decade. This year, the town has proposed a decrease in municipal taxes.

On top of the settlement figures, from 2016 through 2025, approximately 24-percent of the hospital property will be taxed at an assessed value of $40 million, representing an annual tax payment of $1.05 million annually.

While he town of Morristown contended that while the hospital itself may be non-profit, the businesses and entities inside of it - including doctors and practices - were not non-profit.

The state Legislature tried to stop the flurry of the lawsuits in the form of legislation that would calculate the taxes based on a formula, but Gov. Chris Christie pocket-vetoed that bill after it passed through both houses.

Here is the list of hospitals that could be forced to pay tens of millions of dollars, and their towns:

1. Clara Maass Medical Center (Belleville)
2. Jersey City Medical Center (Jersey City)
3. Monmouth Medical Center (Long Branch)
4. Monmouth Medical Center Southern Campus (Kimball Medical Center) (Lakewood)
5. Saint Barnabas Medical Center (Livingston)
6. Newark Beth Israel Medical Center (Newark)
7. HackensackUMC Palisades (Palisades Medical Center) (North Bergen)
8. Holy Name Medical Center (Teaneck)
9. Englewood Hospital and Medical Center (Englewood)
10. Hunterdon Medical Center (Raritan Township)
11. Bayshore Community Hospital (Holmdel)
12. Jersey Shore University Medical Center (Neptune)
13. Riverview Medical Center (Red Bank)
14. Chilton Medical Center (Pequannock)
15. Overlook Medical Center (Summit)
16. Robert Wood Johnson University Hospital (Rahway)
17. Robert Wood Johnson University Hospital (New Brunswick)
18. Robert Wood Johnson University Hospital Somerset (Somerville)
19. Trinitas Regional Medical Center (Elizabeth)
20. CentraState Medical Center (Freehold)
21. Virtua Memorial Hospital (Moorestown)
22. St. Joseph’s Regional Medical Center (Paterson)
23. St. Joseph’s Hospital Wayne (Wayne)
24. JFK Health (Community Hospital Group) (Edison)
25. Shore Memorial Hospital (Somers Point)
26. The Valley Hospital (Ridgewood)
27. Capital Health (Hopewell)
28. Kennedy University Hospital (Stratford)
29. AtlantiCare Regional Medical Center City Campus (Atlantic City)
30. AtlantiCare Regional Medical Center Mainland Campus (Galloway)