IRS requirements on charity care reporting:
Is your hospital ready?
Beginning with tax year 2009, tax-exempt hospitals are now required to provide a detailed assessment and value of their community benefit activities and charity care under Schedule H of the revised IRS Form 990.
While the new rules will bring more uniformity to charity care reporting, they also present a double-edged sword. Hospitals likely will come under much more scrutiny from consumer advocacy groups and their own hometown communities to justify their tax-exempt status. Executive compensation may come under closer review, and government mandates could require hospitals to more accurately measure and demonstrate community benefit.
In addition, Schedule H places a bigger administrative burden on hospital resources in terms of time and expense to carry out the new requirements.
Medlytix offers solutions
to the charity care dilemma
Medlytix has successfully implemented solutions to help hospitals identify charity care patients more accurately. In fact, results with participating hospitals already are trending more than 20 percent over historical levels of reported charity care.
Medlytix primarily utilizes scoring systems on the back end of patient care to classify patients into specific economic groups based on financial means. Its process, however, is far more complex than traditional credit scoring systems that rely on information from credit bureaus.
Resolve your charity care reporting dilemma
Want to learn more? Contact Medlytix directly at (678) 507-2304