Aug. 14—The IRS issued a final rule Aug. 14 governing some components of a new reporting requirement for not-for-profit hospitals.

The final rule specified the time frame in which hospitals must pay penalties if they fail to meet a new requirement under the Affordable Care Act to conduct regular community health needs assessments. Hospitals that fail to perform the assessment to IRS specifications every three year face the loss of their tax exempt status and a $50,000 fine.

Proposed rules governing most aspects of the community health needs assessment were issued in March and hospital officials are awaiting final version of the major provisions. However, the requirement began for the taxable year of each hospital beginning after March 23, 2012.

Rules implementing the needs assessment have drawn strong objections from hospital advocates over the program’s detailed requirements and the costs those compliance mandates will impose on not-for-profit hospitals.

Publication Date: Wednesday, August 14, 2013