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New IRS rules crack down on nonprofit hospitals

By The Hill  
   December 31, 2014

The federal government is cracking down on nonprofit hospitals under Obamacare in an attempt to prevent harsh collection practices and steep charges for the uninsured. Newly finalized regulations from the Internal Revenue Service, announced Monday, will require nonprofit hospitals to "take an active role in improving the health of the communities" by making payment methods more fair and making costs more transparent. For example, nonprofit hospitals are banned from asking for money in patients' rooms or selling debt to third-party companies unless they make a "reasonable effort" to offer financial assistance. Each hospital must also take steps to improve the health of its community, including a semi-annual evaluation of the area's "health needs."

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