April 28, 2023
House Ways and Means Oversight Subcommittee hearing on tax-exempt hospitals and the community benefit standard
On April 26, the House Ways and Means Oversight Subcommittee held a hearing entitled, "Tax Exempt Hospitals and the Community Benefit Standard." The hearing considered the benefits provided by non-profit hospitals to American communities in contrast to the cost of their tax-exempt status to American taxpayers. In particular, the discussion focused on how the IRS determines tax-exempt status, including the community benefit standard and whether the current reporting requirements (i.e., "Schedule H") are sufficient.
Lawmakers heard testimony from a panel of four witnesses, including a representative from the Government Accountability Office (GAO), academics and a representative from the American Hospital Association (AHA). Witnesses spoke to the immense value that tax-exempt status afforded to these non-profit hospitals, however some also noted the "variability" across different hospitals in meeting the community benefit standard, recommending several reforms.
More information is available here.
Additional information is also available in the attached Tax Alert.
Hearing on tax-exempt hospitals and community benefit standard