Do you need a nonprofit hospital or are there relevance?

The main justification for extending tax exemption to multi-billion dollar tax free hospitals was their own declared philanthropic activities. In the past many of these hospitals were struggling to provide medical services without resources to free uninsured persons, but other hospitals provided charity care rather than profit centers. With the expansion of access to health insurance under PPACA, we will shift to relief with high utility problem and relevance of tax exemption.

Senator Charles Grassley of Iowa state has long doubted the necessity of non-profit tax exemption for hospitals. Sen Grassley, also against PPACA, had important inputs for the drafting of the law. Especially he is Sec. 9007 created a new section 504 (r) of the Internal Revenue Code and provided additional requirements for charitable hospitals. A new regulation requires a nonprofit hospital.

• Evaluate community needs every three years and implement strategies to respond to identified needs.
• Clarify the eligibility criteria of patients who need assistance.
• Formulate and publicly announce financial aid policies with or without reduction for patients in the poor, and provide emergency care to all people without discrimination.
• Limit the number of qualified persons eligible for emergency or medically necessary care.
• Please do not engage in special collection measures before judging whether the patient is eligible to receive financial assistance.

This seems to be only the beginning of the challenge of justifying the existence of non-profit organizations. A recent compensation study for California non-profit CEOs may be useless. The average compensation for CEOs in California's nonprofit hospitals in 2007 and 2008 was approximately $ 732,000 based on the filling of Form 990 IRS. 16 executives exceeded 1 million dollars. In the case of 11 hospitals, the CEO's remuneration exceeded the eligibility of the hospital's identified charity medicine. This phenomenon gives a new meaning to the concept of charity that starts at home.

Meanwhile, these hospitals were subject to a tax exemption tax of 1.2 to 20 billion dollars. In New Hampshire state, the state attorney general, Michael Delaney, has disclosed non-profit CEOs of more than $ 1 million annually and is investigating CEO compensation for that state. If there are people leaving the oath of poverty, there may be time to return the nuns. If not, non-profit enterprises will need to find new ways to deal with the underlying problem. It may be one of the major challenges of medical reform.