Centre Community Hospital is a private-not-for-profit organization -- so state the bylaws.

However, a Centre County judge has defined the hospital as quasi-public, a ruling the hospital is currently appealing.

College Township officials said this contradiction, and the outcome of a separate civil lawsuit, may translate into the removal of the hospital's tax-exempt status.

Dr. Reid Allison Jr., a former employee of the hospital, filed a civil lawsuit against Centre Community Hospital and wants his case to be heard in court, which can only happen if the hospital is considered a public institution. But since the hospital is appealing the court ruling that declared the hospital quasi-public, Allison's case is currently on hold.

College Township officials said if the decision is upheld, their claim to tax the hospital would be easier to win. The Commonwealth Court hearing will be in Pittsburgh in October.

Service cuts would be likely if the township wins its appeal, since all area assessment bodies would push the annual payment to more than $350,000, said Lance Rose, hospital president and corporate executive officer.

Both the township and Allison said the hospital is inconsistent when referring to its status --either public or private --depending on the situation.

In the township's appeal to remove the hospital's tax-exempt status, the hospital argues that it deserves exemption since it provides a public charitable service to the community, such as medical care, regardless of ability to pay.

But in Allison's civil suit, the hospital argues differently, supporting its own bylaws that state it is a private-not-for-profit hospital.

"Centre Community Hospital is indeed a quasi-public institution," Allison said. "They want to be private in my case so they can push me aside, but they want to be public when it comes to taxation."

In the case, Allison said he was fired from the hospital for administrative reasons. Rose disagreed, saying Allison's dismissal was based on patient care issues.

College Council Chairman Fred Smith said "Bingo!" when presented with Allison's claim and its relationship to the township's argument.

"On one hand the hospital wants to be considered a private organization. But then they turn around and say they are a public organization performing charitable contributions to the community," Smith said.

Allison's case has yet to be heard in court. But the case can only be heard if the hospital's public status remains.

"I merely want the merits of the case heard in court," Allison said. "The hospital insists they are private and thus feel that the case should not be heard."

"The Allison issue is a totally separate case," Rose said, adding that even if the hospital is titled by the state as quasi-public, the township shouldn't be able tax it anyway.

A public hospital is usually funded through taxation, Rose said, so by taxing this hospital, the township would in effect be taxing itself, he added.

Allison claimed that the hospital acted like a private corporation and thus must explain why it has profits each year.

"If in fact the hospital were doing something not within its mission of providing services to the community, then we would have a problem," Rose said, "But we have never crossed that line of trying to make a profit for anything other than to improve the service."

Last year the hospital had revenues of about $3.1 million, Smith said, adding that it appears contradictory that the hospital calls itself private and non-profit, while it records a yearly profit.

Rose dismissed doubts that the hospital is trying to fool the public.

"If you took a picture of a textbook example of a classic non-profit community hospital, you could come up here on the hill and I could show you that picture," Rose said.

"I have spent $25,000 in legal fees and I believe the hospital has spent over $100,000," Allison said. "They seem to be able to afford the court case, so I don't know why cuts would be necessary."

Smith also said the highest estimates of annual property tax from the hospital would be $500,000, leaving the hospital with a multi-million dollar revenue after payment.