IRS Questions Nonprofit Hospitals
June 19, 2006
The Internal Revenue Service has sent detailed questionnaires to more than 550 tax-exempt nonprofit hospitals, kicking off a rigorous investigation of their billing practices, treatment of uninsured patients, as well as a scrutiny of whether they are meeting the standards for charity status, reports The New York Times.
Responding to lawmakers’ growing concerns and recent lawsuits against health-care systems, the IRS said it will intensify its auditing of the organizations, which may result in a review of the current standards hospitals are required to meet to be considered tax-exempt, the Times reports.