IRS proposes new requirements for tax-exempt hospitals

Description

Abstract: The IRS has released proposed regulations clarifying a nonprofit hospital’s responsibilities under a provision of the Affordable Care Act (ACA). Under the new regs, a tax-exempt hospital must establish a written financial assistance plan (FAP) that clearly describes five elements. This article lists those elements and discusses what hospitals need to do to comply. A sidebar lists five steps the IRS regs say a charitable hospital must take to widely publicize its FAP.