Hospitals re-define charity care

Some hospitals in Oregon are adjusting or re-defining their charity care policies in order to prevent possible allegations of wrongdoing. Recently, Legacy Health System of Portland, OR settled a class-action lawsuit that alleged the hospital system provided insufficient charity care and improperly billed uninsured patients. The IRS has also launched an investigation into possible wrongdoing by tax-exempt hospitals, and none of Oregon's health systems want to follow in Legacy's footsteps. Many hospitals have loosened the limits on how much charity care they provide, providing discounts or free services for patients whose incomes are 150 to 400 percent the national poverty level.

Though it seems it would be simple for legislatures to mandate all hospitals give care below a certain income level, but in this case, one size does not fit all. Hospitals that serve the poorest patients often have no choice but to limit charity care to those at the poverty level. But for hospitals that have the option of providing more care, it seems to be best to err on the side of caution. Still, nineteen Oregon hospitals don't have their charity care policies posted online, which could draw unwanted attention from the IRS.

- read this Portland Business Journal article