On May 13, 2004, the Justice Department filed an appeal notice to maintain its ability to appeal the March 4, 2004, jury decision that St. David's Health Care System, Inc., continues to be tax-exempt notwithstanding its decision to contribute substantially all of its operating assets into a joint venture with HCA, Inc. While the notice is not a formal appeal of the jury's decision, it does preserve the government's ability to pursue an appeal. There is some question as to the wisdom of a government appeal because, notwithstanding the jury verdict favoring St. David's, the Fifth Circuit Court of Appeals decision pursuant to which the case was remanded for the jury trial is generally viewed to support the government's approach to joint ventures set forth in Rev. Rul. 98-15.
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