Pennsylvania Supreme Court Decision in the Easton Hospital Case

On Friday, March 24, 2000, the Pennsylvania Supreme Court rendered a favorable decision in the Easton Hospital case, finding that the hospital operates “entirely free of a private profit motive.” Morgan Lewis had filed an Amicus Curiae brief on behalf of the Association of Independent Colleges and Universities in support of Easton Hospital.

The issue involved the hospital’s investments in for-profit entities. The opinion contains language that clearly will be relied upon by charitable institutions in the future.

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