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Grassley asks 10 nonprofits to account for charitable activities

Patient Financial Services Weekly Advisor, May 27, 2005

Senate Finance Committee Chairman Senator Chuck Grassley sent a letter May 25 to 10 nonprofit hospitals, asking them to account for their charitable activities that relate their tax-exempt status.

Grassley said in a press release that the inquiry is a next step in his ongoing effort to review the nonprofit sector in advance of legislation he will introduce to prevent abuse of the federal tax laws that created nonprofit organizations and encourage charitable donations.

"It's my duty to make sure charitable donations actually help those in need," Grassley said in the release. "It's also my job to make sure charities are earning their generous tax breaks. Tax-exempt status is a privilege. Unfortunately some charities abuse that privilege. By gathering information from nonprofit hospitals, I hope to learn whether the benefits they provide to the needy justify the tax breaks they receive."

The letter asks for details including charitable activities, patient billing, and ventures with for-profit companies and hospitals. It was sent to the following hospitals:

• The Cleveland Clinic, Cleveland
• New York Presbyterian Hospital System, New York
• Advocate Health Care Network and Advocate Health and Hospitals Corp., Oak Brook, IL
• Resurrection Medical Center and Resurrection Health Care, Chicago
• Phoebe Putney Health Systems, Inc., Phoebe Putney Memorial Hospital, Inc., Albany, GA
• William Beaumont Hospital and Beaumont Properties, Royal Oak, MI
• North Mississippi Health Services, Inc., North Mississippi Medical Center, Tupelo, MS
• Sutter Health, Sacramento, CA
• Fairview Health Systems, Minneapolis
• Banner Health, Phoenix

For more information and to read Grassley's letter, click here.

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