The American Hospital Association has issued comments on the Internal Revenue Service's proposed rule for community health needs assessments required by all nonprofit hospitals as part of the Patient Protection and Affordable Care Act, according to an AHA News Now report.
The IRS released its proposed rule to enact Section 501(r)(3) of the PPACA in April. The Section requires nonprofit hospitals to complete CHNAs every three years and adopt strategies to address community needs identified by the studies.
In its comments, the AHA stated that the proposed rule reduces the burden on hospitals compared to the IRS' initial guidance for CHNAs issued in 2011. However, the IRS said the amount of time required for hospitals to comply with the rule has been underestimated by the IRS. "Based on estimates and experience, satisfying the requirements of the proposed regulations may involve thousands of hours and the expenditure of tens of thousands of dollars or more," wrote the AHA in its comments.
The AHA asked for more time for hospitals to comply, stating: "The final regulations should include a transition period for hospitals to come into compliance with the finalized financial assistance policy, limitation on charges, and billing and collection requirements commensurate with the extent to which hospital policies, procedures and information systems will need to be changed."
Additionally, the AHA asked the IRS to specify whether the rules applied to government hospitals and also asked the IRS to clarify under which circumstances a hospital could lose tax-exempt status for noncompliance. "The final regulations (§501(r)-2(a)) should state that tax-exempt status will be lost only when, based on all the facts and circumstances, the violation amounts to an egregious and willful failure to meet Section 501(r) requirements," wrote the AHA in its comments.
More Articles on CHNAs:
Community Health Needs Assessment: Beyond Compliance
5 Strategies to Address Obesity, Comply With Federal Requirements for Community Benefits
10 Reasons to Include Community Input in Medical Staff Planning