• Implementing Section 501(r)’s Financial Assistance, Limitation on Charges, and Billing and Collections Requirements
  • November 9, 2012 | Authors: Tiffany Carr Forte; T.J. Sullivan
  • Law Firm: Drinker Biddle & Reath LLP - Washington Office
  • After 40 years without major change, hospitals recognized (or seeking recognition) as charitable organizations described in Section 501(c)(3) of the Internal Revenue Code (the “Code”) became subject to a host of additional requirements when Section 501(r) was added to the Code by 2010’s Patient Protection and Affordable Care Act. Specifically, taxexempt hospitals, including those operated through a joint venture and governmental hospitals that have been recognized as Section 501(c)(3) organizations, must now meet the (1) community health needs assessment (the “CHNA”) requirement, (2) financial assistance policy (“FAP”) requirement, (3) limitation on charges requirement, and (4) billing and collections requirement.