I previously had written on the attack on healthcare with the movie "Sicko" by Michael Moore. Mr. Moore is merely a director who's goal is to shock the public into buying tickets. Healthcare is now up against a more formidable foe, the federal government. The Internal Revenue Service is introducing drastic changes to the way that hospitals must file their taxes. The new form 990 is going to require hospitals to describe the charity that they give to warrant their charitable status. Until now, hospitals have had to do one of three things to prove their worthiness.
1. Maintain an Emergency Room and keep it open regardless of patient's ability to pay
2. Subsidize or give free care to patients
3. Provide an unmet need to the community
Hospitals are being challenged about their tax-exempt status. Executive teams and boards will need to review these new rules to make sure they do not put themselves at risk.
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