In Saginaw General Hospital v. Saginaw, 208 Mich App 595; 528 NW2d 805 (1995), the Court addressed whether a free standing day-care center for the exclusive use and benefit of hospital employees was exempt from taxation under the hospital or public health property exemption, MCL 211.7r; MSA 7.7(4-o). The Saginaw panel held that "in granting a tax exemption to the hospital, only those facilities that are reasonably necessary for the competent operation of the hospital should receive tax exempt status." Id. at 599. Under this standard the Court concluded that the day-care center was exempt from taxation because it qualified as property used "for hospital or health purposes." Id. at 599-601.