Healthcare Reform: What it Means for Non-profit Hospitals October 14, 2009

With so many of our clients representing the healthcare industry, healthcare reform will have a deep and abiding impact on so many we serve.  With the passage of the Senate Finance Committee’s bill comes a number of requirements for non-profit hospitals. They include:

Community Needs Assessment. To be performed at least once every three years with input from the community and the assistance of individuals with special knowledge or expertise of public health issues, and to be widely publicized. An implementation strategy must be adopted to meet the community needs outlined in the assessment. The assessment may be conducted in conjunction with other organizations. Failure to complete an assessment would result in a penalty of up to $50,000.

Promotion of Financial Assistance Policy. Creation and implementation of a policy to widely publicize the health care organization’s financial assistance policy and how to apply for assistance. The policy must also prevent discrimination against those eligible for financial assistance who seek emergency treatment.

Limitation on Charges. Limitation on billing patients who qualify for financial assistance to no more than the amount generally billed to insured patients.

Limitation on Collection. Limitation on taking extraordinaty collection actions against patients without first making attempts to inform the patient about the health care organization’s financial assistance policy.

Community Benefit Review. To be perfomed by the IRS at least once every three years based on information provided in IRS Form 990. HHS Annual Report to Congress. To report levels of charity care, bad debt expenses, unreimbursed costs of means-tested and non-means tested government programs and the cost of community benefit activities. In addition, HHS will conduct a trends study for these areas within five years to be reported to Congress.

What will these new regulations mean to YOUR hospital? How can you prepare? How will additional requirements impact your bottom line? What benefits do you envision these regulations providing both your hospital and your community?