• The Second Shoe Drops: The Treasury Department and the IRS Jointly Issue a Notice On Community Health Needs Assessments.
  • August 25, 2011 | Author: Philip Sprinkle
  • Law Firm: Balch & Bingham LLP - Atlanta Office
  • As predicted in this publication last year [describe date of publication], the community health needs assessments (“CHNAs”) are shaping up to be among the most dramatic changes in history for tax-exempt hospitals. Specifically, the Patient Protection and Affordable Care Act (the “PPACA”) that was enacted on March 23, 2010 targeted tax-exempt hospitals in a number of ways including, importantly, the adoption of new Section 501(r) of the Internal Revenue Code (the “Code”). As previously reported, Section 501(r) creates new limits on billing and collection activities, creates new limitations on hospital charges, establishes extraordinary new requirements regarding the publication of financial assistance policies, and, for tax years commencing on or after March 23, 2012, creates a new CHNA requirement for each tax-exempt hospital. In an uncommon step, the Treasury Department (the “Department”) and the Internal Revenue Service (the “IRS”) just issued Notice 2011-52 (the “Notice”) on July 7, 2011, soliciting comments for the anticipated regulations for Section 501(r). More importantly, the Notice identifies some of the Federal government’s predispositions for the enforcement of Section 501(r).