Between October 2002 and November 2004, three major
nonprofit hospital systems and three independent
nonprofit hospitals, variously located in California, Texas, Arizona, and Nevada, launched a major demonstration project to build upon the community benefit guidance available at that time from CHA and VHA, Inc.
3, discusses an important limitation that may disqualify a
nonprofit hospital from maintaining its exempt status.
More thought should be given to how to measure community benefit in multihospital systems and how to separate out the expenses of nonhospital components of organizations that operate
nonprofit hospitals.
community benefit each
nonprofit hospital provides.
A review of the most recent Internal Revenue Service Form 990s filed by 35
nonprofit hospitals in Arkansas showed that a total of $301.
In the case of
nonprofit hospitals, economic models typically assume that the hospital's objective is to maximize utility, where utility increases with the amount of uncompensated care provided (e.
Section 501(r)(3) of the Patient Protection and Affordable Care Act (ACA) requires that
nonprofit hospitals conduct and report on a community health needs assessment (CHNA) every 3 years to maintain their tax-exempt status (3).
93) Applied together, these cases demonstrate a strong resurgence of antitrust enforcement in the hospital-merger setting and a rejection of previous holdings giving deference to
nonprofit hospital mergers.
a
nonprofit hospital without any kind of monetary threshold or
A group of economics and industrial organization professors said the case relates to whether
nonprofit hospitals in general should be shielded from federal antitrust scrutiny.
Changes to Section 501(r): Best Practices for
Nonprofit Hospitals LIVE Webcast is a must-attend event for
Nonprofit hospitals struggling to comply with the new requirements involved in Section 501 (r).
However, it is important to keep in mind the responsibilities of
nonprofit hospitals and the potential impact their Internal Revenue Service-required community benefits can have in addressing the health needs of our communities.
