Auditor General v. R. B. Smith Memorial Hospital Ass'n

This is an appeal from a decree of the circuit court that the real property owned and used by defendant R. B. Smith Memorial Hospital Association of the city of Alma is exempt from taxation. The auditor general claims that the defendant’s hospital is not a charitable institution within the meaning* of the fourth paragraph of 1 Comp. Laws 1929, § 3395 (Stat. Ann. § 7.7). Although organized as a nonprofit corporation, defendant charges all patients for its services, but does not collect from the indigent. The testimony shows that there was an excess of revenue over costs during* certain periods…