Health Care and Life Sciences > Health Reform Resource Center > IRS to Develop Guidance on Health Care Reform’s Tax-Exempt Hospital Provisions
15 Dec '10

Agency officials have signaled that the IRS is currently finalizing guidance for tax-exempt hospitals regarding new section 501(r) that was added by the Patient Protection and Affordable Care Act (PPACA).  Section 501(r) establishes that tax-exempt hospitals will need to conduct community health needs assessments and then document on Form 990 how to address identified community needs.  Further, each tax-exempt hospital must adopt a written financial assistance policy, provide equitable charges for emergency/medically necessary care to individuals under financial assistance policies as to those under normal insurance plans, and abstain from extraordinary collection actions.  Previously, the IRS had solicited public comments on the new requirements in its Notice 2010-39.  The guidance intends to incorporate these comments and address stakeholder questions that were highlighted for the agency.