Open AccessThe Impact of the Individual Mandate and Internal Revenue Service Form 990 Schedule H on Community Benefits From Nonprofit Hospitals
Author(s) -
Kristine E. Principe,
E. Kathleen Adams,
Jenifer Maynard,
Edmund R. Becker
Publication year - 2012
Publication title -
american journal of public health
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.284
H-Index - 264
eISSN - 1541-0048
pISSN - 0090-0036
DOI - 10.2105/ajph.2011.300339
Subject(s) - internal revenue , scrutiny , business , subsidy , revenue , mandate , legislation , health care , uncompensated care , public health , public administration , service (business) , finance , public economics , public relations , medicaid , economic growth , political science , medicine , economics , nursing , marketing , law
In response to a growing concern that nonprofit hospitals are not providing sufficient benefit to their communities in return for their tax-exempt status, the Internal Revenue Service (IRS) now requires nonprofit hospitals to formally document the extent of their community contributions. While the IRS is increasing financial scrutiny of nonprofit hospitals, many provisions in the recently passed historical health reform legislation will also have a significant impact on the provision of uncompensated care and other community benefits. We argue that health reform does not render the nonprofit organizational form obsolete. Rather, health reform should strengthen the nonprofit hospitals' ability to fulfill their missions by better targeting subsidies for uncompensated care and potentially increasing subsidized health services provision, many of which affect the public's health.