The American Hospital Association and the Healthcare Financial Management Association are urging the Internal Revenue Service to allow multihospital systems to report community benefit activities at the organizational level, instead of judging each facility on its own basis.
IRS urged to tally benefits on systemwide basis
In a July 26 letter to the IRS, the AHA and HFMA joined with the Association of American Medical Colleges and VHA in urging federal rulemakers to change the much-debated Schedule H of the Form 900 tax disclosure to allow systems to account for hospital financial activity on a consolidated basis.
Nearly 60% of all hospitals are members of a system, yet critics say system-level community benefit activities are discounted by the tax forms by undercounting “cross subsidies” among organizations within a system.
The health reform law added several new requirements for tax-exempt hospitals. However, the law stated that the new requirements apply to each hospital in a system individually.
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