AHA urges Congress to retain key tax code provisions related to hospitals

AHA yesterday urged the Senate Finance Committee to retain certain key tax code provisions related to 501(c)(3) hospitals as it develops recommendations for reforming the nation’s tax code. “The ability to obtain tax-exempt financing and to accept tax-deductible charitable contributions are two key benefits of hospital tax-exemption that work to make access to hospital services available where needed,” AHA wrote, responding to a recent request by Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) for public input on how best to simplify and improve the nation’s tax code. “The current exemption for hospital services, governed and guided by the community benefit standard, allows the community in which the hospital operates to determine the needs of its residents, and the hospital to tailor its activities accordingly. That approach continues to work well for communities across the nation….As the committee reviews various tax reform proposals, we ask you to retain current tax code incentives for the provision of health care that effectively promote the important policy objective of providing access to the broad array of health care services provided by hospitals in communities large and small across the country.”