501(r) Compliance

501rCompliance

Section 501(r) of the Internal Revenue Service Code requires 501(c)(3) hospital organizations to meet four general requirements on a facility-by-facility basis: establish written financial assistance and emergency medical care policies; limit amounts charged for emergency or other medically necessary care to individuals eligible for assistance under the hospital's financial assistance policy; make reasonable efforts to determine whether an individual is eligible for assistance under the hospital's financial assistance policy before engaging in extraordinary collection actions against the individual; and conduct a community health needs assessment and adopt an implementation strategy at least once every three years.

A number of hospitals in Kansas have received notices from the IRS informing them of 501(r) compliance checks. Hospitals found to be in non-compliance with the requirements of 501(r) may be subject to substantial financial penalties. If you have questions, please contact Audrey Dunkel at (785) 233-7436.