Hospitals Oppose Proposed Annual Charity Care Requirements

Hospitals are planning a lobbying campaign to stop Congress from adding a minimal level of charity care required for hospitals to maintain their tax-exempt status, according to a report in the New York Times.

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Sen. Charles Grassley (R-Iowa) of the Senate Finance Committee said that many hospitals get “a tremendous advantage” from their tax-exempt status but do not provide enough charity care to justify it, according to the report. The Congressional Joint Committee on Taxation estimates the value of the tax breaks these hospitals receive at more than $6 billion a year.

The American Hospital Association has urged hospital leaders to contact their Congressmen to oppose this legislation because “a formulaic, one-size-fits-all charity care standard will hamstring hospitals’ efforts to respond to the unique needs of their communities,” according to a bulletin quoted in the report.

Read the N.Y. Times’ article about the proposed annual charity care requirements for hospitals.

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