— in expenses

Saint clare's hospital sold substantially all of its assets to prime healthcare services - saint clare's, LLC on october 1, 2015 and ceased operations as a hospital on that date. Saint clare's assets were transferred by the organization on 10/1/15 to an unrelated party. Pursuant to treas. Reg. Section 1.501(r)-3(d)(4) a hospital organization is not required to meet the requirements of section 501(r)(3) with respect to a hospital facility in a taxable year if, before the end of that taxable year, the hospital organization transfers all ownership of the hospital facility to another organization or otherwise ceases its operation of the hospital facility or the facility ceases to be licensed, registered, or similarly recognized as a hospital by a state.