501(r) Final Regulations Released

On December 29, 2014, the Internal Revenue Service released final regulations on the 501(r) requirements under the Affordable Care Act. The guidance finalizes proposed regulations issued in 2012 and 2013 with respect to the requirements 501(c)(3) hospitals must meet in order to maintain tax exempt status. As a reminder, Code Section 501(r) requires hospitals exempt from tax as a charitable organization under 501(c)(3) to meet various new requirements in order to keep their exempt status. These requirements include conducting a community health needs assessment, developing financial assistance policies, requirements on charges, and billing and collection requirements.   

The final regulations will be discussed in more detail in future communications once we have the opportunity to compare the final regulations to the proposed regulations.