Hospital Groups Urge Government to Ease Tax-Exempt Regulations

The American Hospital Association and Premier healthcare alliance have submitted comments to the Internal Revenue Service requesting that non-profit hospitals have flexibility to meet new tax-exemption requirements.

Within the Patient Protection and Affordable Care Act is Section 501(r), which requires non-profit hospitals to implement a financial assistance policy, limit the amounts charged to those eligible for financial assistance and enact other provisions in order to keep their tax exemptions.


The AHA (pdf) wrote that Section 501(r) should not take effect any earlier than Jan. 1, 2014. The group said hospitals need enough time to finalize financial assistance policies and still must work the PPACA's Medicaid expansion and health insurance exchanges into those financial assistance policies. The AHA also asked for "meaningful" guidance before releasing final regulations and a public hearing on whether these regulations apply to government-owned hospitals.

Premier asked the IRS to adopt a "focus on transparency and disclosure rather than a prescriptive, one-size-fits-all approach," according to a news release. It said hospitals should be able to maintain current financial assistance practices, among other recommendations.

More Articles on Non-Profit Hospital Tax-Exempt Status:

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Charity Care at California's Non-Profit Hospitals Under Scrutiny

House Committee Holds Second Meeting on Tax-Exempt Organizations

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