Health care reform bill adds charity reporting requirements 1/15/10

Two provisions in the health care reform bill passed by the Senate and currently under negotiation with the House would set new potentially precedent setting oversight standards for nonprofits. One Senate provision would require the Treasury Department to review information about each tax-exempt hospital's "community-benefit" activities (such as offering full-time emergency care to all patients regardless of ability to pay) every three years to determine whether the institution remains eligible for a tax exemption. The other Senate provision would require the Treasury Department to make an annual report to congress on the levels of charity care provided by nonprofit and other hospitals and on related topics. The American Hospital Association has particularly objected to two requirements in the Senate bill. "Such a review is unnecessary, expensive for the hospital, and would effectively empower the Internal Revenue Service to establish requirements for tax exemptions based on a flawed reporting mechanism and absent input from communities served by the hospital and those who represent them," the hospital association said. For more information click here.