Grassley targets nonprofit hospitals on charity care

Sen. Charles Grassley is weighing proposing legislation in early 2009 that would hold nonprofit hospitals more accountable for the billions of dollars in annual tax exemptions they enjoy. The legislation would require nonprofit hospitals to spend a minimum amount on free care for the poor, and set curbs on executive compensation and conflicts of interest, according to staff members for Grassley, the ranking Republican on the Senate Finance Committee. Penalties would be imposed on nonprofit hospitals that fail to meet the new requirements.