IRS Releases New Requirements for Tax-Exempt Hospitals

The Internal Revenue Service (IRS) has released new requirements that 501(c)(3) hospitals and healthcare organizations must satisfy to retain their tax-exempt status. Mandated by the Patient Protection and Affordable Care Act, the new regulations require facilities to establish written financial assistance and emergency medical care policies, limit amounts charged for emergency or other medically necessary care to individuals eligible for assistance under the hospital's financial assistance policy, and make reasonable efforts to determine whether an individual is eligible for assistance under the hospital's financial assistance policy before engaging in extraordinary collection actions against the individual.