H.R.3019 - Holding Nonprofit Hospitals Accountable Act (119th Congress)
Summary
H.R. 3019, the Holding Nonprofit Hospitals Accountable Act, aims to amend the Internal Revenue Code of 1986 by establishing new community benefit standards for tax-exempt hospital organizations. The bill introduces specific requirements related to board composition, patient treatment, and expenditure thresholds for community benefits. It also mandates reviews and reports on financial assistance policies and IRS enforcement.
Expected Effects
The bill, if enacted, would change the criteria for tax-exempt status for nonprofit hospitals. Hospitals would need to meet stricter community benefit standards, potentially leading to increased spending on patient care, training, and facility improvements. These changes could also lead to greater scrutiny and oversight of hospital financial assistance policies.
Potential Benefits
- Increased Community Benefit: Requires hospitals to spend a certain percentage of their tax exemptions on community benefits.
- Improved Access to Care: Mandates hospitals to treat patients who pay through public programs without limitations.
- Enhanced Financial Assistance Policies: Aims to ensure that financial assistance policies are followed and that patients are billed fairly.
- Greater Community Representation: Requires hospitals to have a board of directors drawn from the community.
- Increased Oversight: Mandates reviews and reports on financial assistance policies and IRS enforcement.
Potential Disadvantages
- Increased Costs for Hospitals: Hospitals may face increased costs to meet the new community benefit standards.
- Administrative Burden: Hospitals may face additional administrative burdens to comply with the new requirements and reporting.
- Potential for Reduced Services: Some hospitals may reduce services or limit certain programs to meet the expenditure threshold.
- Unintended Consequences: Stricter regulations could lead to unintended consequences, such as hospital closures or mergers.
- Limited Flexibility: The bill may limit hospitals' flexibility in allocating resources to meet community needs.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve healthcare access and community benefits. Congress has the power to tax and spend for the general welfare, as outlined in Article I, Section 8. The bill does not appear to infringe on any specific constitutional rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).