The Dartmouth Hitchcock Clinic on Pleasant Street has been operating for roughly two decades. Credit: CATHERINE McLAUGHLIN / Monitor

A years-long dispute between Dartmouth Health and the City of Concord over whether the company qualifies for a tax-exemption has ended with an arrangement that splits the middle.

The Upper Valley-based healthcare company has operated a facility at the corner of Pleasant Street and Langley Parkway, offering primary care, lab work and other services since โ€œat least 2005,โ€ a legal filing states.

Tax records indicate that Dartmouth has paid a full tax bill on these properties in previous years. In 2024 and again this year, the non-profit healthcare company applied for tax-exempt status with the city and was denied. Dartmouth then sued in consecutive lawsuits appealing the rejections.

The litigation notes Dartmouth Healthโ€™s non-profit, 501(c)(3) designation and describes its commitment to โ€œthe purpose of providing a full range of medical services to treat sick and disabled people regardless of their financial or social circumstances.โ€

The clinic sits across the street from Concord Hospitalโ€™s central campus, and its webpage states the two facilities share โ€œa close working relationship.โ€

Under a payment-in-lieu-of-taxes agreement, or PILOT, ending that litigation, Dartmouth is recognized by the city as a charitable organization and will pay half of its would-be tax obligation.

During case discovery, the city โ€œdetermined that they would likely qualify,โ€ said City Solicitor John Conforti, โ€œand we negotiated this PILOT as a resolution of the case.โ€

The hospital group is pleased with the resolution, said Audra Burns Dartmouth Healthโ€™s senior manager of media relations.

โ€œOur tax-exempt status allows us to direct resources toward patient care, community health programs, and services that would otherwise not be financially sustainable,โ€ Burns said in a written statement. โ€œItโ€™s an essential part of how we fulfill our mission to provide high quality accessible care to the Concord community and beyond.โ€

For each of the last two years, this comes to a difference of around $150,000 in tax revenue โ€” that is to say, itโ€™s $150,000 less than the city would have been receiving annually from Dartmouth under the status quo but also $150,000 more than would go into city coffers if no taxes were paid on that facility.

With an assessed value of roughly $10.7 million for the properties in 2025 and with a Concord tax rate of $29.11, a full bill on the clinic for this year would have been about $310,000. Under the new tax agreement, Dartmouth will pay about $155,000, a city report states.

The agreement spans seven years, ending in 2031, and was approved by the Concord City Council on Dec. 8.

For reference, Concord Hospitalโ€™s main medical centers in the city are tax-exempt and have no agreements for payments in lieu of taxes. The hospital company pays some taxes on properties that it leases to tax-liable entities, such as Granite Ledges.

Editorโ€™s note: This story was updated to include a statement from Dartmouth Health.

Catherine McLaughlin is a reporter covering the city of Concord for the Concord Monitor. She can be reached at cmclaughlin@cmonitor.com. You can subscribe to her newsletter, the City Beat, at concordmonitor.com.