Pittsburgh, UPMC Drop Lawsuits Over Nonprofit Status

PITTSBURGH (AP) - The City of Pittsburgh and the University of Pittsburgh Medical Center have dropped opposing lawsuits over the hospital network's nonprofit status.

Mayoral spokesman Kevin Acklin tells the Pittsburgh Tribune-Review that the city dropped its lawsuit in hopes the city and UPMC can craft an agreement for nonprofits to invest in city neighborhoods.

Former Mayor Luke Ravenstahl's administration sued UPMC, claiming the network didn't "act" like a nonprofit and therefore shouldn't enjoy tax-exempt status.

UPMC countered by suing the city in federal court, saying the tax status challenge violated UPMC's constitutional rights.

The city is hoping it can eventually get nonprofits - like hospitals and universities - to provide a regular contribution to help support the city and its services since the nonprofits don't pay taxes on some of their properties.