Review your community benefit policy
Health Care Auditing Strategies, August 1, 2007
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On April 5, Iowa Senator Chuck Grassley wrote a letter to the GAO asking for the community-benefit standard to be studied. In the letter, Grassley cited hospital executive and board member compensation, as well as the involvement of for-profit business ventures in nonprofit hospitals, as the reasons why he wants the study conducted. "The community benefit standard means different things to different people," Grassley said in a recent statement. "It's loosely defined. We need to get a better handle on how nonprofit hospitals are fulfilling their requirement to serve the community in exchange for the generous tax breaks they receive." Grassley is not alone in his desire to see the community benefit standard clarified. In September 2006, the IRS surveyed 550 hospitals about the amount of charity care that they provide.
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