The Law of Tax-Exempt Healthcare Organizations, 3rd Edition

CHAPTER TWENTY-SIX

Charity Care

• § 26.10 Additional Statutory Requirements for Hospitals (New)
  • (a) Statutory Rules
    • (i) Hospitals Subject to Requirements
    • (ii) Community Health Needs Assessment
    • (iii) Financial Assistance Policy
    • (iv) Emergency Medical Care Policy
    • (v) Limitation on Charges
    • (vi) Billing and Collection
    • (vii) Mandatory IRS Review of Tax Exemption
    • (viii) Effective Dates
  • (b) IRS-Sought Comments
  • (c) Hospital Community Response

p. 680. Insert following existing material:

§ 26.10 ADDITIONAL STATUTORY REQUIREMENTS FOR HOSPITALS (NEW)

To be tax-exempt as charitable organizations, nonprofit hospitals are required to meet additional statutory requirements that were enacted in 2010.³⁴

(a) Statutory Rules

(i) Hospitals Subject to Requirements. These rules apply to a hospital organization, namely, (1) an organization that operates a facility that is required by a state to be licensed, registered, or similarly recognized as a hospital; and (2) any other organization that the IRS determines has the provision of hospital care as its principal function or purpose constituting the basis for its tax exemption.³⁵

If a hospital organization operates more than one hospital facility, the organization must meet these new requirements with respect to each facility and is not treated as exempt with respect to any facility not meeting the requirements.³⁶

(ii) Community Health Needs Assessment. A hospital organization must meet certain community health needs assessment (CHNA) requirements. ...