Controversial California law would set charity care requirements

California legislators continue to debate a bill that would require nonprofit hospitals to provide annual charity care equal to 5 percent of hospital revenue in order to maintain their tax-exempt status, the Sacramento Business Journal reported. Supports say the bill will ensure taxpayer subsidies result in some community benefit, but others think the bill is a one-size-fits-all requirement that doesn't account for different communities' needs. California law now requires hospitals provide detailed charity care plans and discount payment policies, however there is currently no uniform definition or measurement of community benefits. The state provides more than $13 billion in unreimbursed care each year. Article

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