Were talking about the non-profit right?
You say it's being mismanaged, yet it's a "church" ran business. Kinda tells me the "church" is sick. Again, the mismanagement is a symptom of something else bigger.
I want to get this straight, because your blurring the two hospitals and it's hard for me to separate which one your talking about.
You said taxing "it", would cause "it" harm. "it" is already in harm. "it", being the non-profit.
Here is what I'm understanding, Correct me if I have the wrong picture.
1. Non profit hospital is struggling to the brink of shutting it's doors.
2. Non profit is struggling due to mis-managment.
Because said non-profit doesn't know how to manage it's assets, it should be exempt from taxes because paying taxes would cause further harm.
Sounds like you want to reward dysfunction.