IRS gives nonprofit hospitals some Form 990 reprieve

The Internal Revenue Service (IRS) has altered the reporting requirements for not-for-profit hospitals in the 2010 tax year, the agency announced late last week.

The IRS has made it optional to report sums on Part V, Section B on Form 990, the primary reporting document for not-for-profit organizations. That section pertains specifically to the reporting of hospital community health needs assessments, the collection of debts, charges for medical care, and levels of uncompensated care.

The agency had made changes on the form as part of the Patient Protection and Affordable Care Act. But it had been lobbied to delay implementing the changes by the American Hospital Association (AHA), the Healthcare Financial Management Association (HFMA), and other hospital associations.

"We voiced concerns particularly over the issues of billing and collections and the definition of reasonable effort and extraordinary collection and the types of patients that the law required a limitation on gross charges," said HFMA Vice President Richard Gundling in a statement. "We'll continue to work with the IRS to clarify the language on the Form 990."

No other reporting requirements have been changed, the IRS noted. Hospitals must still submit audited financial statements.

Fore more information:
- read the IRS announcement (.pdf)
- check out the HFMA report

Related Articles:
AHA seeks tax form adjustment for community benefit reporting 
Non-profit hospitals under the gun