New bill introduced in California that sets stricter guidelines for nonprofit hospitals

California Sen. Bob Wieckowski (D-Fremont), backed by healthcare advocates, has introduced Senate Bill 346, which would “establish clearer standards for community benefits” for private nonprofit hospitals and nonprofit multispecialty clinics, according to the East Bay Express.

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According to a news release from the California Nurses Association/National Nurses United, the bill would do the following, among other things:

1. Clearly define what is considered charity care.

2. Ensure that “community benefit” spending is meeting real needs in the community.

3. Improve reporting requirements for the amount of charity care and community benefits an organization provides so that there is greater public transparency to ensure hospitals are meeting their charity care and community benefit obligation.

4. Require community representation, from underserved populations and a public health department, on each hospital or system’s community benefits planning committee.

The new requirements are in addition to current guidelines. Private nonprofit hospitals in California are already required to adopt and update a community benefits plan for providing community benefits; to complete a community needs assessment and to update it at least every three years; and to file a report on its community benefits plan and the activities undertaken to address community needs with the Office of Statewide Health Planning and Development, according to a draft of the bill.

 

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