One little-known element of the health care reform law sets new rules for nonprofits. They are required to assess community needs, and inform patients of charity policies. Some legislators want tougher rules and oversight to make sure they are providing enough service to the community to justify the tax break.
A number of reporters have delved into the issue of charity care and community benefit at nonprofit hospitals by using data from their IRS 990 forms. For example:
Reporter Tony Leys, of the Des Moines Register, describes how he examined how much charity care is provided by hospitals in Iowa in return for the substantial tax breaks they get for operating as nonprofit organizations. Leys, a 2011-12 Regional Health Journalism Fellow, was able to compare local hospitals, using new IRS reporting requirements for nonprofit hospitals, and estimated how local property tax revenue was affected by the tax-exempt hospital properties in those areas.
M.B. Pell of The Atlanta Journal-Constitution used 990 forms to look at compensation provided to hospital executives and board members
Financial data from IRS 990 forms about nonprofit hospitals: AHCJ has obtained information on the finances of nonprofit hospitals across the country from GuideStar, which compiles and disseminates financial documents from most U.S. nonprofits. This information is from tax year 2009. AHCJ hopes to update this information annually.