What does Preamble of Holding Nonprofit Hospitals Accountable Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The amendment aims to establish new community benefit standards for tax-exempt hospital organizations. The bill includes provisions for 'other purposes' beyond the community benefit standards.

What does SHORT TITLE. of Holding Nonprofit Hospitals Accountable Act do?

This bill is formally titled the Holding Nonprofit Hospitals Accountable Act.

What does ADDITIONAL REQUIREMENTS FOR CERTAIN HOSPITALS. of Holding Nonprofit Hospitals Accountable Act do?

This section amends Section 501(r) of the Internal Revenue Code of 1986 to establish a community benefit standard for hospital organizations. To meet this standard, a hospital organization must have a board of directors drawn from the community, treat patients using public programs without limiting the number served, and spend a certain amount on training, research, facility improvements, or free/discounted care. The 'expenditure threshold' is defined as 100 percent of the hospital organization's federal, state, and local tax exemptions. Expenditures for facility and equipment improvements are limited to 50% of the minimum spending requirement and exclude acquisitions of physician practices or other care delivery organizations. The amendments apply to taxable years beginning after December 31, 2025.

What does HOSPITAL ORGANIZATION FINANCIAL ASSISTANCE POLICY COMPLIANCE of Holding Nonprofit Hospitals Accountable Act do?

This section amends Section 501(r) of the Internal Revenue Code of 1986. The amendment inserts the phrase 'according to Medicare rates with respect' after 'billed' in paragraph (5)(A). The amendment applies to taxable years beginning after December 31, 2025.

What does FINANCIAL ASSISTANCE POLICY REVIEW AND REPORT. of Holding Nonprofit Hospitals Accountable Act do?

This section requires the Treasury Inspector General for Tax Administration (TIGTA) to review financial assistance policies of hospital organizations under section 501(r)(4) of the Internal Revenue Code. TIGTA must submit an annual report to the House Committee on Ways and Means and the Senate Committee on Finance detailing the review's results. The report must include the content of financial assistance policies and compliance with section 501(r)(4) requirements. TIGTA can also include other relevant topics in the report.

What does INTERNAL REVENUE SERVICE ENFORCEMENT REVIEW AND REPORT. of Holding Nonprofit Hospitals Accountable Act do?

This section mandates a review of the Internal Revenue Service's (IRS) effectiveness in enforcing the community benefit standard for hospital organizations. The Comptroller General of the United States is tasked with conducting this review. A report detailing the review's results must be submitted to the House Committee on Ways and Means and the Senate Committee on Finance. The report is due within 365 days of the Act's enactment and every three years thereafter.

Back to bills

Holding Nonprofit Hospitals Accountable Act

Last updated: 4/24/2025 · Introduced: 4/24/2025

Author: Victoria Spartz (R-IN)

TL;DR (AI)

This bill establishes a community benefit standard for nonprofit hospitals, requiring them to have community-based boards, treat public program patients without limitations, and spend a significant portion of their tax exemptions on training, research, facility improvements, or free/discounted care.
The bill amends financial assistance policies for hospitals to align with Medicare rates.
It mandates annual reviews by the Treasury Inspector General for Tax Administration (TIGTA) and a comprehensive review by the Comptroller General of the United States to assess hospital financial assistance policies and IRS enforcement of community benefit standards, respectively.

119th Congressin committeeOfficial page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 4 more.

6 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account