The GuideStar Blog retired September 9, 2019. We invite you to visit its replacement, the Candid Blog. You’re also welcome to browse or search the GuideStar Blog archives. Onward!

GuideStar Blog

Health Care Law Revelations


Earlier today I wrote about the fact that we should expect a series of revelations over the next few weeks about details found in the health care bill. Here are two from today’s news reports:

According to the BNA Daily Tax Report “Nonprofit hospitals will have to begin proving to the Internal Revenue Service (IRS) that they are providing a charitable service to the community in order to keep their tax exemptions under health care overhaul legislation signed into law March 23. The law requires that tax-exempt hospitals complete a community needs assessment once every three years; to adopt and publicize a financial assistance policy; and adds a new Section 4959 to the Internal Revenue Code to impose an excise tax penalty of $50,000 for any nonprofit hospital that fails to satisfy the community health needs assessment. “The provisions take steps to differentiate tax-exempt hospitals from for-profit hospitals and provide further transparency about tax-exempt hospitals’ fulfilling their charitable mission,” said Senator Charles Grassley (R-IA) in a March 24 statement. In addition to the extra measures now required by nonprofit hospitals and the IRS, the law also requires the Treasury Department and Health and Human Services Department to submit an annual report to Congress on the level of charity care, bad debt expenses, and the unreimbursed costs of means-tested and non-means-tested government programs.”

I suspect we’ll be seeing more of this demand to demonstrate charitable status as local and state governments continue their efforts to collect additional taxes.

And here’s a fun one from The Daily Beast: “ Lost in the acrimony of the health-care reform, there was one clause that all sides seem to agree on: Beginning next year, all restaurant chains with more than 20 locations will have to post calorie counts and other similar information.” Here The Daily Beast provides a list of the “The 40 Deadliest Fast-Food Meals.”

Bob.jpgThe preceding is a guest post Bob Ottenhoff,  Chief Executive of the Center for Disaster Philanthropy. With an entrepreneurial spirit, strong technology focus, and a quest to make an impact in the world, Bob has the ability to take an organization and lead it into strong performance, sustainability, and industry leadership.

Topics: Legal Health Care Reform