California Lawmakers Continue to Debate Charity Care Bill

The California Assembly is debating legislation that would require nonprofit hospitals to prove they provide enough charity care to justify their tax-exempt status, according to an Associated Press/San Jose Mercury News report.

There were three separate votes on the bill yesterday, but none resulted in enough votes to pass the legislation. Assemblyman Bob Wieckowski (D) received permission to bring the bill up again today, which is the deadline for bills to move from one house of the legislature to another.

Under the bill, private, nonprofit hospitals would be required to provide charity care "in an amount equal to at least 8 percent of [their] operating margins" by Jan. 1, 2015. Also, private, nonprofit hospitals would not be able to have operating margins exceeding 10 percent. Hospitals would face a fine if they failed to submit timely reports detailing their charity care.

In debate, Republicans opposed the bill, according to the report. They said it could reduce access to charitable care for the state's poorest residents.

More Articles on California and Charity Care:

Charity Care Lags at Oregon's For-Profit Hospitals
Pittsburgh v. UPMC: Legal Arguments Behind the Tax-Exempt Challenge
Hospitals' Community Benefit Report Questioned


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