IRS issues proposed rule on ACA requirements for tax-exempt hospitals
AHA News Now
Jun 22, 2012
As the nation awaits the Supreme Court's decision on the Patient Protection and Affordable Care Act, the Internal Revenue Service today released a proposed rule implementing requirements for tax-exempt hospitals under Section 501(r) of the Act. The 94-page rule, which includes a 54-page preamble, contains proposed regulations that provide guidance regarding the requirements for charitable hospital organizations relating to financial assistance and emergency care policies, charges for certain care provided to individuals eligible for financial assistance, and billing and collections. IRS addresses which tax-exempt hospitals will be covered by the regulations and proposes to extend the requirements to government hospitals. The proposed rule does not contain additional guidance on the community needs assessment requirements, noting that further guidance on those will be addressed separately. The proposed rule will be published in the June 26 Federal Register with a 90-day comment period. The AHA soon will issue a Legal Advisory and other materials to help tax-exempt hospitals comment on the proposed rule. Last summer, the AHA submitted detailed comments on IRS' revised Schedule H questions and instructions implementing the Section 501(r) requirements.