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Joint Ventures and Tax-Exempt Status

Learn about tax-exemption issues for joint ventures between for-profit and not-for-profit healthcare entities.


Two existing organizations may choose to come together and contractually create a new, joint venture. In a joint venture, the existing organizations each contribute resources to the new organization and share jointly in the new organization’s profits.

I. Joint Ventures between Tax-Exempt and For-Profit Entities

A tax-exempt healthcare entity is allowed to enter into joint ventures with nonexempt entities or individuals in some circumstances. A joint venture might be appealing because it...