On December 29, 2014, the IRS issued final regulations (available here) under Section 501(r) of the Internal Revenue Code. Section 501(r) requires charitable hospitals to meet the following requirements in order to be tax-exempt:
- Conduct a community health needs assessment at least once every three years and develop an implementation strategy to meet the needs that are identified;
- Have a written financial assistance policy and provide emergency medical care regardless of an individual’s eligibility for financial assistance;
- Bill individuals eligible for financial assistance for emergency or other medically necessary care no more than the amounts generally billed to patients that have insurance covering such care; and
- Make reasonable efforts to determine whether patients are eligible for financial assistance before engaging in extraordinary collection efforts.
This client alert highlights noteworthy items in the final regulations.