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4 <br />Mr. Michael AureIi <br />Opinion No. 20001103 <br />November 8, 2000 <br />Page No. 2 <br />As a hospice facility in Arkansas, the Arkansas Hospice facility by state law has to meet "the <br />applicable construction requirements of the Rules and Regulations for Hospitals and Related <br />Institutions in Arkansas" (Act 283 of 1983). The Arkansas Hospice and its hospice facility are <br />licensed by the Arkansas Department of Health, Division of Health Facilities Services as are all <br />hospitals in Arkansas. The Arkansas Hospice is also a member of the Arkansas Hospital <br />Association. <br />All who qualify for care in the Arkansas Hospice facility are accepted regardless of race, age, <br />gender, sexual orientation, religion, disease, handicap status, or ability to pay. Donations to <br />Arkansas Hospice cover the cost for services for those unable to pay. <br />Question: Does the Arkansas Hospice qualify for the sales and use tax exemption for hospitals <br />and sanatoriums? <br />Response: The mission of the Hospice will be to provide "therapeutic" care with, generally <br />speaking, no surgical procedures nor life-saving or resuscitative services. A <br />hospital, on the other hand, provides "curative" care with the focus being a patient's <br />recovery to good health. The definition of the term "hospital" in Gross Receipts <br />Regulation GR-37(E)(3) requires that in addition to the overnight stay of patients, a <br />broad range of medical and surgical services must be provided. The Hospice will <br />not provide a broad range of surgical services and therefore would not qualify under <br />the "hospital" part of the exemption. <br />A sanatorium is defined in GR-37(E)(4) as an institution that provides long-term in- <br />patient medical or mental treatment for physically or mentally ill people. The term <br />includes charitable, nonprofit nursing homes. The services provided by the <br />Arkansas Hospice bring it within the scope of a sanatorium. As such, the Arkansas <br />Hospice does qualify for the hospital and sanatorium sales tax exemption under <br />GR-3 7(C) on its purchases of tangible personal property arid services. Please note, <br />however, that the exemption would not extend to the purchase of materials used in <br />the original construction, extension or repair of the Hospice's facilities. <br />This opinion is based on my understanding of the facts as set out in your inquiry as those facts <br />are governed by current Arkansas laws, rules and regulations. Any change in the facts or law <br />could result in a different opinion. <br />Sincerely, <br />Michael J. Wehrle, Attorney <br />Revenue Legal Counsel <br />MJW/kad <br />