Form 990
IRS issues draft community health needs assessment criteria
Topics: Mergers and Acquisitions, Health Systems, Strategy, Health Care Reform, Market Trends
July 11, 2011
The Internal Revenue Service (IRS) has released proposed criteria for not-for-profit hospitals' community needs assessments under the federal health reform law, Modern Healthcare reports.
The reform law requires tax-exempt hospitals to conduct a community health needs assessment every three years beginning on March 23, 2012, or risk being subject to a $50,000 fine each taxable year. The proposed criteria describe which hospitals must complete the assessment and outline process and reporting standards.
According to Modern Healthcare, the IRS notice said not-for-profit hospitals should list identified health needs in order of priority, describe the community served, and explain how the assessment was performed. Assessments also must detail how community input was incorporated, and describe how hospitals plan to address their identified needs.
Under the proposal, health systems would document separate assessments and strategies for each facility, but would be allowed to cooperate with other hospitals to collect data.
IRS is accepting comments on the proposed criteria until Sept. 23 (Evans, Modern Healthcare, 7/7 [subscription required]; Dunn, Becker's Hospital Review, 7/8).
