In recent years, charitable health systems have increasingly pursued joint ventures with for-profit entities for the provision of post-acute care and other specialty healthcare services in order to achieve efficiencies and improve the delivery of care. Such joint ventures are typically structured by forming new legal entities, often limited liability companies, that are operated in a for-profit format. A tax-exempt hospital system must be careful to ensure that certain features are in place to protect its tax-exempt status and minimize the risk that income from the joint venture will be treated as unrelated business income. Continue reading >