Faculty Journal Articles and Book Chapters

Tax-Exempt Hospitals: Renewed Focus on Indigent Care


The Patient Protection and Affordable Care Act addressed many of the problems experienced by indigent patients and the uninsured. One set of changes establishes new structural and operational requirements for hospitals that are tax exempt under § 501(c)(3) of the Internal Revenue Code. Under the new law, these hospitals will be required to assess the need for indigent care in their service areas, report to the Internal Revenue Service on their performance, and establish financial assistance policies. Tax-exempt hospitals also will be limited in the ability to bill full “chargemaster” rates to patients who qualify for financial assistance, or to engage in “extraordinary collection actions” against such patients. For its part, the Internal Revenue Service will be required to report to Congress periodically on the hospitals’ reported performance

Publication Title

Journal of Health & Life Sciences Law

Document Type



Tax Exempt, Hospitals, Internal Revenue Service, Indigent Care, Financial Assistance Policy, Community Health Needs Assessment