IRS to investigate nonprofit hospitals

The Internal Revenue Service has launched a "wide-ranging" investigation into possible wrongdoing by tax-exempt hospitals. The inquiry will focus on allegations that nonprofit hospitals refuse to provide care to uninsured patients. The IRS will also look into charges that hospitals are failing to provide adequate levels of charity care. The agency has sent questionnaires to 550 hospitals demanding compensation figures for top executives and information about their billing practices as well as other details about their operations.

Critics have questioned the approach of the questionnaire, which includes questions such "Did your hospital's emergency room deny services to any individuals that requested such services?" and "Did your hospital limit public access to the findings or results from any of its medical research?" Sen. Charles Grassley (R-IA) said Washington needs to do more, telling the paper "asking questions is not enough. The IRS and Treasury need to take action."

- read this article from The New York Times