Health Reform: Is the Hospital Industry Misapplying Congressional Intent?

Posted by Jason Greis on October 13, 2010 under Articles | Be the First to Comment

Thunder rolled down from Capitol Hill last week when Sen. Charles Grassley (R–Iowa) claimed that certain hospital systems and associations were misapplying the intent of Section 501(r)(5)(B) that prohibits the use of gross charges under the Patient Protection and Affordable Care Act. In their comments to the IRS regarding implementing regulations, the American Hospital Association (AHA) urged the IRS to apply a “gross charges” basis to charge those who do not qualify for financial assistance, and to use it as a starting place for calculating assistance to those who do. Read More...

Executive Compensation Limits under the ARRA: A Sign of Things to Come for Not-for-Profit Healthcare Organizations?

Posted by Jason Greis on March 15, 2009 under Articles | Be the First to Comment

The American Reinvestment and Recovery Act of 2009 (“ARRA”), which became law on February 19, 2009, restricts executive compensation for certain entities participating in the federal government’s Troubled Asset Relief Program (“TARP”).  Generally, these restrictions limit the types and value of certain compensation paid to executives and other highly compensated individuals in these entities.  The TARP entities are required to abide by these restrictions as a condition of receiving federal funds under the ARRA.  Several of the specific limitations on executive compensation in the ARRA are as follows: Read More...

IRS Report Provides Insight into Community Benefit and Executive Compensation Practices of Tax-Exempt Hospitals

Posted by Jason Greis on February 15, 2009 under Articles | Read the First Comment

On February 12, 2009, the Internal Revenue Services released its long-anticipated final report (the “Report”) containing the results of a two-year study focusing on community benefit reporting practices and executive compensation practices of tax-exempt hospitals.  The results are based on a survey the IRS sent to 500 tax-exempt hospitals in May 2006, and builds on analysis of results first released by the IRS in an interim report in July 2007.  Read More...

Upcoming IRS Report to Focus on Tax-Exempt Hospital Executive Compensation

Posted by Jason Greis on January 6, 2009 under Articles | Be the First to Comment

Two of my McGuireWoods colleagues wrote the below Client Alert discussing the IRS’s continued focus on non-profit executive compensation.  Tax-exempt 501(c)(3) LTACHs should carefully follow both the legislative actions of Senate Finance Committee members Senators Charles Grassley and Senator Max Baucus, both of whom support and have promised significant changes to the way non-profit hospitals are organized and managed.  Senator Grassley and his staff released the attached document entitled “Tax-Exempt Hospitals: Discussion Draft” on June 20, 2007, which is probably instructive regarding the type of far-reaching legislation Senator Grassley is likely to propose at some point in 2009. Read More...

Charity Case Standards are Key Issue on Senator Charles Grassley’s 2009 Health Care Agenda

Posted by Jason Greis on December 29, 2008 under Articles | Be the First to Comment

Three of my colleagues recently wrote the below Client Update.  Non-profit LTACHs should closely monitor the ongoing legislative efforts of the Senate Finance Committee and its lead advocate of establishing quantitative charity care and community benefit standards, Senator Charles Grassley.  Non-profit LTACHs should also be congnizant of ongoing state and IRS activities to update financial reporting requirements for not-profit hospitals. Read More...

Electronic Health Records Donations: Tax Exempt Issues to Consider (8/18/08)

Posted by Jason Greis on December 8, 2008 under Articles | Be the First to Comment

The Centers for Medicare and Medicaid Services created a Stark Act exception and an Anti Kickback Statute safe harbor in 2006 to allow hospitals and other entities to provide physicians with software and other assistance relating to the implementation of electronic health records (“EHR”) systems. However, tax-exempt hospitals still were concerned with private inurement issues related to the donation of EHR systems to physicians. Read More...