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How much? That is the question everyone seems to be asking about charity care. HFMA has just released guidance that will help answer that question.
Does your community benefit program have enough benefit? More important, can you prove that it does?
The new health reform legislation places new community benefit and financial assistance requirements on tax-exempt providers. Use these questions as a guide to record your hospital's charity care policies and activities.
The importance of a hospital's mission cannot be overstated: Providing safe, high-quality care that benefits the community.
12 initiatives that hospitals can consider implementing to help get ready for the new Form 990, including Schedule H.
The final version of the revised form appears to be an improvement over the June 2007 discussion draft, but will nonetheless add to the reporting burdens of hospitals and other healthcare providers.
Providing health care for the uninsured is an ongoing national concern that affects all Americans, but it also is an immediate concern for a hospital's CFO.
Schedule H of the new Form 990 requires detailed reporting of the community benefit hospitals provide, beginning with tax year 2009. Is your organization ready?
In a May 12, 2010 letter to FASB, the HFMA Principles & Practices Board comments on proposed changes to reduce the diversity in practice of the disclosure of a measure of charity care.
HFMA's April 6, 2007 comment letter to GASB states that P&P Board Statement 15 on financial reporting allows for better aligned charity care reporting practices among public and private healthcare institutions.
Can underpayments and contractual write offs be included when reporting uncompensated care-at least internally, not to the IRS?
HFMA commented on FASB's proposed Accounting Standards Update Health Care Entities (Topic 954), Presentation and Disclosure of Net Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts.
Providers can help ease potential tensions in their community by
injecting transparency into their community benefit collection and
reporting process, and by improving how they tell the story of community
benefit to stakeholders in their region.
HFMA comments for the record of the September 13, 2006, hearing, "Taking the Pulse of Charitable Care and Community Benefits at Nonprofit Hospitals."
To assist hospital in fulfilling their community benefit, HFMA's Principles and Practices Board has developed an illustrative charity care policy.
HFMA comments on additional requirements for tax-exempt hospitals imposed by the Affordable Care Act that have the potential to help tax-exempt healthcare providers demonstrate that they are fulfilling their tax-exempt purpose and build upon an already high standard of community service.
"I wish Senator Grassley was sitting here with us for that last discussion."
GSHS Value of Tax Exempt Status.pdf
Formulas you can use as a guide to gauge uncompensated care costs within your organization.
View the document
Keys to Reporting Uncompensated Care From 1996 to 2006, the amount of national uncompensated care delivered by registered community hospitals went from $18 billion to more than $31 billion per year, according to American
Take control of your hospital’s bad debt with this four-step analysis. Typical high-level bad debt metrics do little to pinpoint specific opportunities for improvement. To develop a sustained and robust understanding of the determinants of bad debt, healthcare providers should drill down further by conducting four additional analyses.
Contributed by Timothy R. Maurice, FHFMA, CPA, Chief Financial Officer, Good Samaritan Community Healthcare, Puyallup, WA View the annual report Download InstructionsTo download from a PC, right click on the document link and select "Save Target As..."To download from a
Each year, AHA publishes aggregate information on the level of uncompensated care delivered in U.S. hospitals. The data used to generate these numbers come from AHA's Annual Survey of Hospitals. The fact sheet provides the definition of uncompensated care and
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