D-H Clinic persists in battle with Bedford over taxes
Dec. 1—Dartmouth-Hitchcock Clinic continues to fight the town of Bedford over its request to be exempt from property taxes as a charitable organization.
A lawsuit was filed in September in Hillsborough County Superior Court, following others filed the past two years.
In April, the clinic applied for a property tax exemption for its property at 25 South River Road. The town assessor's office denied the request, according to the suit.
The clinic, which has been incorporated as a nonprofit since 1983, seeks a reversal of the town's decision and asks a judge to declare the clinic a charitable organization. The Bedford location was built in 1984.
The clinic provides "comprehensive health care services" to patients in Bedford. "Since its formation, D-H has continuously advanced the purpose of providing a full range of medical services to treat sick and disabled people regardless of their financial or social circumstances," the suit reads.
The lawsuit says that between 2018 and 2020, Dartmouth-Hitchcock has provided more than $2.68 million of free, subsidized or other uncompensated health care services for Bedford residents.
"Undeniably, DHC's Bedford property has substantially contributed to the provision of low- or no-cost medical treatment to individuals within Bedford and the surrounding communities," the lawsuit reads.
The three lawsuits will likely be consolidated into one case, according to court documents.
Russell Hilliard, a lawyer representing the town, said the case will likely head to trial next year. He did not comment further.
On June 22, 2020, then-Assessor William Ingalls wrote to Dartmouth-Hitchcock: "There is nothing in the application that would compel this office to grant exempt status as a charitable institution."
He said the clinic doesn't meet the state's definition of charitable because the purpose is not to provide services at no cost and doesn't have a history as a free clinic.
"It does not appear that services provided regardless of the ability to pay, is a priority," the letter reads. "It appears that after exhausting multiple avenues and methods of payment including budgeting with said client/patient, some portion of services may be provided at no or discounted cost to client/patient."
Ingalls said there is likely a minimal need for no-cost medical services in Bedford with the town's median family income of approximately $127,000.
According to tax records, Dartmouth-Hitchcock Clinic owed $28,668.36 in property taxes in 2021.
In March, Bedford residents approved a zoning amendment to limit the expansion of large medical centers in a part of the town. The amendment appeared to be aimed at Dartmouth-Hitchcock Health, which owns 14 acres in the town's Performance Zone and is looking to expand its services.
That new zoning amendment limits buildings to 20,000 square feet. D-H hopes to build a 49,000-square-foot building on Kilton Road. Plans filed with the town have been tabled at the request of Dartmouth.
Under the amendment, property owners can ask for waivers, which the planning board can grant if it agrees it's in the district's best interest — which petition supporters say likely means agreeing to pay full taxes.
Petitioners for the amendment said the clinic always has paid property taxes and wants to avoid paying for the larger facility.
