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UPMC: Tax Exempt Status Challenge Should Be Dismissed

(Photo Credit: KDKA)

(Photo Credit: KDKA)

Christine D'Antonio
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PITTSBURGH (KDKA) — It didn’t take long for UPMC to ask a federal judge to toss out Mayor Ravenstahl’s lawsuit against the health giant.

Just a week after the case was transferred from state to federal court, UPMC says the case should be dismissed altogether.

In an 11-page motion, UPMC claims the city did not follow the proper procedure to challenge its tax exempt status:

Statement from UPMC:

“[The city's lawsuit is] a targeted attack against UPMC [which] deliberately circumvented the entire administrative process required for the assessment and collection of city payroll taxes.”

The legal wrangling began a month ago when Mayor Ravenstahl charged that UPMC it is not a purely public charity, does less than it should as a non-profit, and does not qualify for tax exemption under the Pennsylvania’s so-called HUP test.

“When they had revenues of over $5.7 billion dollars– to give less than two-percent back to my community is in my mind a clear failure of meeting one of the prongs of that HUP test,” Mayor Ravenstahl says.

It’s a claim strongly rejected by UPMC.

“We easily meet all five criteria for our tax exempt status.  There’s no question,” says UPMC spokesman Paul Wood. “We contributed last year $622 million dollars in charity care and other charitable contributions to organizations in the city, Allegheny County, and around the region.

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