HFMA submits statement to house ways and means committee

Healthcare Financial Management, July, 2005

HFMA submitted a statement on the attributes of tax-exempt hospitals for the written record of the House Ways and Means Committee hearing May 26. HFMA contends that when evaluating whether hospitals merit their tax-exempt status, legislators should recognize the full range of community services, and not just charity care.

Failure to recognize the broad basis for tax exemption could lead to a specific trade-off between the amount of charity care provided and the amount of tax exemption allowed, HFMA explained, which would undermine important and cumulative community benefits that tax-exempt healthcare institutions deliver.

HFMA also asked the committee to realize that healthcare needs differ greatly by community, and therefore solutions, whether legislated or voluntary, must be flexible to best serve the needs of the patients and communities they serve. Also, comparable, scalable reporting standards will greatly help tax-exempt hospitals accurately document and report the entire range of the community benefits provided.

To read a copy of the statement, visit www.hfma.org/resource/400457.pdf.>

COPYRIGHT 2005 Healthcare Financial Management Association

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