New Rules for Non-Profit Hospitals: Transparency and Community Benefits
This act introduces new requirements for tax-exempt hospitals to ensure they genuinely serve the community. Hospitals will need to meet specific standards, such as treating patients from public programs and investing in healthcare, which could improve access to medical services for all citizens.
Key points
Non-profit hospitals must have a board of directors drawn from their local community.
Hospitals cannot limit the number of patients served under Medicare and Medicaid programs.
Hospitals must spend an amount equal to their tax exemptions on training, education, research, facility improvements, or free/discounted care.
Expenditures on facility and equipment improvements are capped at 50% of the minimum spending, and acquiring other healthcare organizations does not count.
Hospitals must account for free or discounted care based on Medicare rates.
Regular reviews and reports on hospital financial assistance policies and compliance with new standards will be conducted.
These changes will apply to tax years beginning after December 31, 2023.
Expired
Additional Information
Print number: 117_HR_9080
Sponsor: Rep. Spartz, Victoria [R-IN-5]
Process start date: 2022-09-29