This installment of Hall Render's Health Law Broadcast series on health care reform is designed to provide you with the insight, analysis and practical suggestions with respect to the various reform initiatives that will affect your organization. 

IRS REQUESTS COMMENTS ON ADDITIONAL REQUIREMENTS FOR TAX-EXEMPT HOSPITALS 

The Internal Revenue Service recently issued Notice 2010-39 ("Notice") to solicit comments regarding the application of new requirements placed on tax-exempt hospitals by the Patient Protection and Affordable Care Act ("PPACA").   

Under the PPACA, tax-exempt hospitals must now conduct periodic community health needs assessments and adopt an implementation strategy to meet those community needs; establish a written financial assistance policy and an emergency care policy; limit the amounts charged for emergency or other medically necessary care to persons who qualify for financial assistance under the hospital's financial assistance policy; and make reasonable efforts to determine whether an individual is eligible for financial assistance before taking extraordinary collection actions against such individual.  (An article discussing these new requirements in more detail can be found here:  http://www.hallrender.com/library/articles/624/HLB_05_10_10.html.) 

The Notice discusses each of these new requirements and provides additional guidance based on the Joint Committee on Taxation's Technical Explanation of the Revenue Provisions of the "Reconciliation Act of 2010," as amended, in combination with the "Patient Protection and Affordable Care Act." Through the Notice, the Internal Revenue Service is also requesting comments from those interested parties that will be affected by these new requirements.  More specifically, the Internal Revenue Service is seeking comments regarding:  

• The appropriate requirements for a community health needs assessment;
• What constitutes "reasonable efforts" in determining eligibility for assistance under a hospital's financial assistance policy for purposes of the new billing and collection rule; and
• Where an organization operates more than one hospital facility, the consequences of that organization's failure to comply with the new rules with respect to some, but not all, of its hospital facilities.    

If interested in submitting comments, they must be delivered to the Internal Revenue Service by July 22, 2010.  You may submit comments via mail or electronically at notice.comments@irscounsel.treas.gov.  You should include "Notice 2010-39" in the subject line of any electronic delivery of comments.  Note that comments submitted will be available for public inspection and copying.   

Should you have questions regarding these issues, please contact:

• Greg Melgares at (gmelgares@hallrender.com or (414) 721-0459);
• Calvin Chambers (cchambers@hallrender.com or (317) 977-1459);
• Thomas Donohoe (tdonohoe@hallrender.com or (317) 338-2289); or
• Your regular Hall Render attorney. 

Visit our Health Law Broadcast at hallrender.com/reform for a comprehensive listing of health care reform resources.  Also sign up for health care reform alerts and periodic updates as we continue to monitor this important issue.