AHA Opposes Bill Adding IRS Schedule H Reporting Requirements for Tax-Exempt Hospitals
The American Hospital Association submitted comments June 30 to the House Ways and Means Committee opposing H.R. 9504, the Tax-Exempt Hospital Transparency Act, ahead of a scheduled July 1 markup. The bill would add reporting requirements to hospitals' Schedule H IRS forms, affecting nearly two-thirds of all hospitals. While the AHA acknowledged improvements from an earlier draft — including removal of a parallel for-profit tax calculation and inclusion of standardized definitions — it maintains serious concerns about administrative and financial burdens, particularly requirements focused on financial assistance reporting that exclude Medicaid shortfall and other community benefit components. The bill includes carve-outs for small facilities but still requires eventual compliance.
Medicaid managed care organizations contracting with safety-net hospitals should monitor this legislation because increased IRS reporting burdens on tax-exempt hospitals could affect their financial viability and willingness to participate in Medicaid networks, particularly for smaller facilities already operating on tight margins.
Finance
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