IRS Releases Private Business Use Guidelines For Non-Profit Hospitals Participating In ACOs

On October 24, 2014, the Internal Revenue Service (IRS) released interim guidance to non-profit hospital and health care organizations participating in Medicare accountable care organizations (ACO) on how the IRS will determine if the non-profit organization is using tax-exempt bond-financed facilities for private business use. The guidance also covers management contracts that do not result in private business use of a tax exempt bond financed facility. The guidance adds a new safe harbor provision.

The guidance was released as IRS Notice 2014-67; it provides interim guidance. Private business use will not generally result  under the . . .