Health officials in Montana have proposed to set and oversee standards for charitable contributions made by non-profit hospitals that determine their access to millions of dollars in tax exemptions, according to a Sept. 27 report from National Public Radio.
The proposal follows a state audit and investigation that found some of the state's wealthiest hospitals falling behind state and national averages in community-based giving. Health officials plan to ask legislators to approve the proposal in January.
The IRS requires nonprofit hospitals to report their spending to promote health and benefit the community. However, the rules regarding such contributions and reporting are varied. Montana is one of the most recent states to consider imposing new rules for increasing oversight of nonprofit hospitals.
Montana hospital industry officials say they will work with the state to shape the proposed legislation.