Baucus Bill Does Not Include Minimum Requirements Charity Care

The healthcare reform bill recently released by Sen. Max Baucus (D-Mont.) does not include minimum requirements for charity care for nonprofit hospitals, according to a report in Wall Street Journal’s Health Blog.

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Nonprofit hospitals have been concerned that healthcare reform legislation would require minimum levels of charity care to maintain nonprofit status and therefore tax-exemption.

According to the report, Sen. Charles Grassley (R-Iowa) would be most likely to push for minimum requirements, as he has been “questioning for years the charitable — thus tax-exempt — status of some nonprofits that pay executives huge corporate-like salaries and sue poor patients for payments, while amassing great wealth during the stock market’s boom.”

Sen. Baucus’s bill does include requirements for nonprofit hospitals, including a periodic needs assessment, and the prohibition of certain collection actions, but the report calls these requirements “relatively benign.”

Read the WSJ Health Blog’s report on requirements for charity care.

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