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Financial Update on Non-Profit Healthcare Organizations

3 Responses

1. Ken, on September 19, 2012 at 6:36 PM said:

   How ObamaCare Could Cause Nonprofit Hospitals To Lose Tax-Exempt Status

   Writer david Whelan atates that the Affordable Care Act (ObamaCare) has been knocked for its alleged unintended consequences. The bill’s attracted speculation that workers will lose their health plans, college grads will stop looking for jobs, and even that fewer people will get married. Those are just the effects related to insurance regulations.

   http://thehealthcareblog.com/blog/2012/09/18/how-obamacare-could-cause-nonprofit-hospitals-to-lose-tax-exempt-status/?utm_source=THCB+Merge&utm_campaign=017657d67b-THCB_Reader_See_One_Do_One_Harm_One_7_23_2012&utm_medium=email

   But, less attention has been given to how hospitals and health systems might change after ObamaCare. Any thoughts?

   Ken

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2. Ann Miller RN MHA, on October 7, 2012 at 1:47 AM said:

   Exemptions Restored for 9,000 Nonprofits

   Under the 2006 Pension Protection Act, small nonprofits were required to file a postcard return. While larger nonprofits must file IRS Form 990 or the 990EZ, those nonprofits with receipts under $50,000 must now file a Form 990-N postcard return.

   If the smaller nonprofit fails to file for a period of three years, there is an automatic revocation of exempt status. Nonprofits who failed to file but desire to continue to function must reapply by submitting IRS Form 1023. It often takes the IRS six to 12 months to reinstate the exempt status.

   Over 9,000 nonprofits have now filed IRS Form 1023 and their exempt status has been restored. Approximately two-thirds of these are Sec. 501(c)(3) qualified public charities.

   By requalifying for exempt status as a public charity, the organization may receive deductible gifts and issue the required receipts. The IRS name for the receipt is a contemporaneous written acknowledgement. For gifts over $250, donors must receive the receipt prior to filing their tax returns.

   An estimated 400,000 organizations lost exempt status due to their failure to file the postcard return for three years.

   Editor’s Note: Many of the smaller organizations have ceased operation. However, those organizations that are still in operation and want to regain exempt status are now required to expend considerable time and effort to file IRS Form 1023. In the future, small organizations may avoid this cost and effort as well as the threat of lost deductions by diligently filing their annual Form 990-N.

   Source: Children’s Home Society of Florida Foundation

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3. Robert James Cimasi MHA AVA ASA CMP™, on November 23, 2013 at 12:20 PM said:

   Does CEO Compensation at Non-Profit Hospitals Need to be Tied to Quality Metrics?
   

   While hospital performance in various quality metrics has been laboring under increasing levels of scrutiny, the issue of whether executive-level compensation relates to quality performance has largely been ignored during healthcare reform implementation.

   Click to access Compensation.pdf

   This recent publication from the Journal of the American Medical Association sheds more light on compensation for CEOs of non-profit hospitals noting a lack of association between higher CEO compensation rates and typical quality metric indicators.

   Robert James Cimasi MHA AVA ASA CMP™
   [Health Capital Consultants, LLC]

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