Friday, April 08, 2011

IRS begins Obamacare Review of Hospitals

The health care reform legislation requires the Secretary of the Treasury (or delegate) to conduct a review of the community benefit activities of each tax-exempt hospital at least once every three years.

According to the IRS official’s informal statements made at a District of Columbia Bar luncheon, the IRS will not notify hospitals that they are under review, nor does it expect to contact hospitals for information while conducting these reviews. The IRS official also clarified that although these mandated community benefit reviews are not “examinations,” the IRS may refer a hospital for examination based on information gathered during the review.