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Holding Nonprofit Hospitals Accountable Act
12/20/2024, 9:05 AM
Summary of Bill HR 2859
Additionally, the bill requires nonprofit hospitals to conduct a community health needs assessment every three years and develop an implementation strategy to address identified needs. This is intended to ensure that nonprofit hospitals are meeting the healthcare needs of their communities and using their tax-exempt status to benefit the public.
The Holding Nonprofit Hospitals Accountable Act also includes provisions to prevent excessive executive compensation at nonprofit hospitals. The bill requires nonprofit hospitals to disclose the compensation of their top executives and board members, as well as any financial relationships between the hospital and these individuals. Overall, the bill seeks to promote transparency, accountability, and community benefit at nonprofit hospitals in order to ensure that they are fulfilling their charitable mission and serving the public good.
Congressional Summary of HR 2859
Holding Nonprofit Hospitals Accountable Act
The bill imposes additional community benefit standards for tax-exempt hospital organizations. A hospital organization must have a board of directors drawn from the community in which it is located and must provide medical care for patients who pay their bills through public programs, including Medicare and Medicaid.
The organization may not limit the number of patients served at any clinical site it owns or controls and must spend specified amounts on (1) training, education, or research designed to improve patient care; (2) improvements to facilities and equipment; and (3) free or discounted care.
The Inspector General for Tax Administration of the Department of the Treasury must conduct a review of the financial assistance policies of tax-exempt hospital organizations.
The Government Accountability Office must review and report on the effectiveness of the Internal Revenue Service in enforcing compliance of tax-exempt hospitals with the new community benefit standards.
