Private benefit, joint ventures, and the death of healthcare as an exempt purpose

The private benefit doctrine has become the IRS' main policing tool for tax exemption in healthcare. The IRS' modern interpretation of private benefit has clearly become the major limitation on exempt status. This Article begins by tracing the common law origins of this doctrine and how it became such an integral part of the IRS' analysis. Next, the author looks at policy issues regarding alternative analysis to the private benefit doctrine in cases of joint ventures between healthcare providers and for-profit investors. Finally, Professor Colombo questions the expanded use of this doctrine, arguing that in its current form it has no sound legal or policy under-pinnings.