Hospital Tax-exempt Status

HAP continues to work with state lawmakers to uphold the tenets of Pennsylvania’s vanguard Institutions of Purely Public Charity Act (Act 55 of 1997) to reduce the likelihood of challenges to hospitals’ tax status.

Any Willing Insurer

HAP opposes Any Willing Insurer proposals, which would force hospitals to contract with any interested insurer as a requirement to obtain their tax-exempt status. This approach forces a one-size-fits-all system for how hospitals must contract with insurers and how they are paid for patient care. Any Willing Insurer would hinder contracts that promote innovative care models and hospitals' ability to address specific patient and community health care needs. HAP advocates for elective network contracting, which is a fundamental to the competitive process and the concept of managed care––adopted by the state and federal governments to control costs and improve care.

 

Capitol BuildingCommunity Health Needs Assessments

Under the ACA, not-for-profit hospitals are required to conduct Community Health Needs Assessments (CHNA) every three years. These assessments identify the main health needs and challenges facing the patients and communities that the hospital serves. Hospitals get this information through focus groups, interviews, surveys, analysis of health indicators, and data collection. They determine how to approach these health problems by developing, implementing, and evaluating improvement plans.

The ACA implements the community health needs assessment requirement through changes in the Internal Revenue Code. The Internal Revenue Service's Schedule H form and instructions address how not-for-profit hospitals report CHNA activities on their Form 990. Additionally, Schedule H, Part V, incorporates the requirements of the Internal Revenue Code Section 501(r) as contained in the ACA. 

HAP Contacts

For more information, contact Heather Tyler, vice president, state legislative advocacy, or Jolene Calla, Esq., vice president, finance & legal affairs. Media inquiries should be directed to Liam Migdail, vice president, strategic communications.

 


HAP News


September 12, 2024

Patient Safety Has Improved Over Pre-Pandemic Era

Hospital teams are providing safer care and achieving better patient outcomes than before the pandemic, even as they care for more patients with more severe and complex medical conditions.

September 10, 2024

A New Strategic Plan for Maternal Health

The Shapiro administration recently announced the commonwealth’s new initiative to develop a maternal health strategic plan. The plan, announced during an event last month, seeks to address disparities in care and ensure pregnant women have access to the prenatal and postpartum care they need to live healthy lives.

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