The level of charity care not-for-profit hospitals provide is under fire once again. In an in-depth study of 10 charity hospitals, Senate finance committee investigators have found that although charity hospitals offer free care, they often don't inform patients that assistance is available. Some charity hospitals also charge poorer patients more for care while charging well-off patients with coverage less. Additionally, hospital CEOs enjoy expensive perks, which calls into question whether hospitals are doing enough to keep their tax-exempt status. "Non-profit doesn't necessarily mean pro-poor patient," Finance Committee Chairman Charles Grassley (R-IA) observed in a statement. Today the committee will hold hearings to decide whether the hospitals will keep their tax-exempt status. They will also try to determine the standard level of charity care that hospitals must offer--defining what constitutes "community benefit" has been a constant source of trouble for nonprofit hospitals. Earlier this week, Senator Grassley met with the head of the Catholic Health Association (CHA), which has developed a set of guidelines for planning, measuring, and documenting community benefits. The CHA guidelines could become the new standard hospitals must meet in order to retain their tax-free status.
For more on the charity hospital investigation:
- check out this Washington Post report
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