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A Word to the Wise on the Hospital Side

As published in the Medical News Inc. publications

Under healthcare reform, PPACA, there is a whole new code section called IRC 501(r) with new reporting requirements for tax exempt hospitals," said Marsha Dieckman, partner and director of Health Care Financial and Tax Services for HORNE LLP.

"Reporting on the following three requirements will be required on the 2011 Schedule H in Form 990 - financial assistance policy, limitations on charges and billing and collection requirements," said Dieckman, adding that the broad categories also have specific requirements attached to each of them.

A fourth requirement coming down the pike is a community health needs assessment. It must be completed by Dec. 31, 2013 for calendar year filers. "There is a $50,000 excise tax penalty for failure to comply with that requirement," noted Dieckman. She added that because such an assessment takes time to conduct and craft into a report, hospitals should begin to prepare for the new requirement as soon as possible.

Dieckman pointed out the deadlines above are for hospitals reporting on a calendar year. Those on a differing fiscal year should consult with a tax advisor for deadlines specific to their facility.