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Obama-Care Clamps Down On ‘Charity’ Hospitals

From the Daily Caller:

Obamacare installs new scrutiny, fines for charitable hospitals that treat uninsured people

By Patrick Howley | August 8, 2013

Charitable hospitals that treat uninsured Americans will be subjected to new levels of scrutiny of their nonprofit status and could face sizable new fines under Obamacare.

A new provision in Section 501 of the Internal Revenue Code, which takes effect under Obamacare, sets new standards of review and installs new financial penalties for tax-exempt charitable hospitals, which devote a minimum amount of their expenses to treat uninsured poor people.

Approximately 60 percent of American hospitals are currently nonprofit.

Charity for the uninsured is one of the factors that could discourage enrollment in Obamacare, which requires all Americans to purchase heath insurance or else face new taxes themselves from the IRS.

And we can’t have that. If people won’t sign up for Obama-Care, they should die in the street like dogs. That is ‘social justice.’

“It requires tax-exempt hospitals to do a community needs survey and file additional paperwork with the IRS every three years. This is to prove that the charitable hospital is still needed in their geographical area — ‘needed’ as defined by Obamacare and overseen by IRS bureaucrats,” said John Kartch, spokesman for Americans for Tax Reform.

“Failure to comply, or to prove this continuing need, could result in the loss of the hospital’s tax-exempt status. The hospital would then become a for-profit venture, paying income tax — hence the positive revenue score” for the federal government, Kartch said…

Additionally, the rise in the number of insured Americans under Obamacare will make it more difficult for tax-exempt hospitals to continue meeting required thresholds for treating the uninsured, driving more hospitals into the for-profit category and yielding more taxable money for the federal government…

Obamacare’s new requirements could slam hospitals with massive $50,000 fines if they fail to meet bureaucrats’ standards.

“The hospital must disclose in its annual information report to the IRS (i.e., Form 990 and related schedules) how it is addressing the needs identified in the assessment and, if all identified needs are not addressed, the reasons why (e.g., lack of financial or human resources). Each hospital facility is required to make the assessment widely available. Failure to complete a community health needs assessment in any applicable three-year period results in a penalty on the organization of up to $50,000,” according to the JCT report.

The government is particularly interested in how and why hospitals will be providing discounted or free care to poor patients, requiring each of them to “adopt, implement, and widely publicize a written financial assistance policy” and explain the methods they use to screen applicants for assistance and how they calculate patients’ bills…

Which is pretty damn rich, given that the IRS given up trying to verify income on the application for Obama-Care subsidies.

Healthcare experts warn that the Obamacare’s new requirements make it almost impossible for charitable hospitals to navigate treacherous new waters…

That is the whole idea. After all, one of the most fundamental principals of Communism is that all good things must come from the government, the state. Including charity.

This article was posted by Steve on Friday, August 9th, 2013. Comments are currently closed.

3 Responses to “Obama-Care Clamps Down On ‘Charity’ Hospitals”

  1. GetBackJack says:

    Well, well, well … the glove comes off the fist

  2. Noyzmakr says:

    Can somebody tell me what the AMA saw in this bill that they loved so much that they whole heartedly supported nerobama and the dimocrats in their efforts to pass it? It’s as though the whole industry had a death wish.

  3. bousquem25 says:

    This going into effect is going to screw the hospital I work for over big time. The hospital is a non-profit catholic hospital that treats alot of people for free or greatly reduced rates. I work over at their other facility that is a mental health hospital and that facility is a drain on the community but the order that runs the place keeps it open because of their mission to help the poor and if the mental health hospital closed then the wouldn’t be one in this part of the state. The state had promised to pay any differences between the cost to run the mental health hospital and what revenues were taken in, or at least most of of the difference. The checks have been coming later and later every year. I guess now O-care may just force the closure if the whole health system is going to get massive fines for providing charity care.

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