IRS Clarifies Community Health Needs Penalties For Non-Profit Hospitals

On April 5, 2013, the Internal Revenue Service (IRS) released proposed regulations on the requirement that non-profit hospitals conduct community health needs assessments (CHNAs) and adopt implementation strategies at least once every three years. Non-profit hospitals that fail to meet the CHNA requirements in any taxable year will be fined a $50,000 excise tax. Each 501(c)(3) hospital organization is required to meet four general requirements on a facility-by-facility basis: Establish written financial assistance and emergency medical care policies Limit amounts charged for emergency or other medically necessary care to individuals eligible for assistance . . .