IRS Seeks Comments on Additional Requirements for Tax-Exempt Hospitals - June 2, 2010

On May 27, the Internal Revenue Service (IRS) issued a notice summarizing the new requirements for tax-exempt hospitals under the Patient Protection and Affordable Care Act (PPACA) and requesting public comments on implementation. Under PPACA, tax-exempt hospitals will be required to:

• Conduct a community health needs assessment every three years and adopt implementation strategies in response to the assessment
• Establish policies on financial assistance and emergency care
• Limit the amounts charged for emergency or other medically necessary care to those receiving financial assistance to no more than the amount billed to those who have insurance for such care
• Avoid extraordinary collection actions for unpaid care, until the hospital has determined whether an individual is eligible for financial assistance under hospital policy.