New Standards for Tax-Exempt Hospitals

New Standards for Tax-Exempt Hospitals

One frequently overlooked provision of the new health care law sets out a few requirements for non-profit hospitals that want to keep their tax-exempt status. Some details, from the Health Affairs blog:

Section 9007 of the Patient Protection and Affordable Care Act , creating a new 504(r) of the Internal Revenue Code, “Additional Requirements for Charitable Hospitals,” crowns a long-standing campaign by Senator Charles Grassley to increase the accountability and “charitability” of tax exempt hospitals. Indeed, Republican Grassley proudly claims credit for the provision on his website, in spite of the fact that Republican senators have in general had little good to say about the legislation. Senator Grassley and others have long questioned whether the benefits that exempt hospitals provide to their communities and to lower-income Americans justify the billions of dollars that they are afforded each year in tax subsidies.

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