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HEALTH CARE Asante's physician groups not charities, judge rules Comment By Jim Moore Grants Pass Daily Courier MailTribune.com By Jim Moore Grants Pass Daily Courier Posted Feb. 23, 2015 at 10:56 AM Updated Feb 23, 2015 at 2:48 PM By Jim Moore Grants Pass Daily Courier Posted Feb. 23, 2015 at 10:56 AM Updated Feb 23, 2015 at 2:48 PM » Social News The Oregon Tax Court has agreed with Josephine County in a dispute with Asante over a property tax exemption related to the health care organization's nonprofit status. The ruling, which was handed down Feb. 9, pertains only to a specific division of Asante called Asante Physician Partners, and it essentially said that the doctors' groups included in the division do not qualify as charitable organizations. The Salem-based tax court concluded that three Grants Pass medical practices that are members of Asante Physician Partners did not meet the "gift or giving" requirement to qualify as charitable organizations for the period of July 1, 2013, through June 30, 2014, and therefore were not exempt from property taxes. The ruling means that Josephine County will not have to return about $33,000 in property taxes it has already collected. The tax bill for an endocrinology and urology practice at 700 S.W. Ramsey Ave. and a family medical practice at 520 S.W. Ramsey Ave. was paid by Asante Physician Partners, which then applied for an exemption. When the request was denied by the Josephine County Assessor's Office, Asante appealed. Assistant County Counsel Leah Harper said the ruling pertains only to those members of Asante Physician Partners who were located at those addresses during the stated period. Asante Physician Partners was launched in 2011 and is described in Asante publicity literature as an organization of medical professionals employed by Asante. It operates similar to a large group practice. It has its own board of directors, made up half of physicians and half from Asante's executive staff. County Assessor Connie Roach said that applying for some exemptions by nonprofit organizations isn't unusual. However, the exemptions aren't automatic. "We look at each exempt application on its own," Roach said. "Just because you are nonprofit doesn't mean you are exempt from property taxes." Jill Tanner, the presiding magistrate for the tax court, wrote that three requirements must be met for an organization to be eligible for exemption: Charity is the organization's primary, if not sole, objective; The organization's operations must serve the charitable mission of the organization; There is an element of "gift or giving" in the activities of the organization. In her conclusion, Tanner wrote: "After carefully considering all of the testimony and evidence presented the court finds that Plaintiff did not meet its burden of proof that Plaintiff has an element of gift or giving in its activities, and is not a charitable organization for purposes of (Oregon law)." The ruling does not affect the Asante system as a whole. Asante is a nonprofit health care association based in Medford. It operates Three Rivers Medical Center in Grants Pass, Rogue Regional Medical Center in Medford and Ashland Community Hospital. Asante Physician Partners has clinics in Grants Pass, Ashland, Medford and Talent. While the ruling affects only three local practices, theoretically it could have major ramifications. "I think this is a significant case in the big picture," Josephine County Legal Counsel Wally Hicks said. At this point, the ruling by the tax court magistrate pertains only to this specific case. However, if a higher court were to reach the same conclusion it could set a precedent. "That would mean that similarly designed organizations could face the same rulings," Hicks said. Harper said the tax court ruling could be appealed, however it was unclear whether Asante intends to take it further. Gerald M. Shean, a Medford lawyer who represented Asante Physician Partners in the case, did not return several calls for comment. The Daily Courier also did not get return calls from representatives of  Asante Physician Partners or Asante. By Jim Moore Grants Pass Daily Courier MailTribune.com By Jim Moore Grants Pass Daily Courier Posted Feb. 23, 2015 at 10:56 AM Updated Feb 23, 2015 at 2:48 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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