American Hospital Association Challenges IRS Denial Of Tax-Exempt Status To Non-MSSP ACOs

On May 16, 2016, the American Hospital Association (AHA) challenged a decision issued in April 2016 by the Internal Revenue Service (IRS) that denied tax-exempt status to a commercial accountable care organization (ACO) because it was not participating in the Medicare Shared Savings Program (MSSP). The IRS issued its determination letter on April 8, 2016 to an unnamed ACO formed by an unnamed non-profit health care system to serve as a legal and operational vehicle for achieving clinical care integration, coordination, and accountability among employed and independent physicians practicing throughout the system-affiliated facilities. The IRS said the . . .