The Daily Caller reported, “A new provision in Section 501 of the Internal Revenue Code, which takes effect under Obamacare, sets new standards of review and installs new financial penalties for tax-exempt charitable hospitals, which devote a minimum amount of their expenses to treat uninsured poor people.”
With approximately 60 percent of American hospitals classified as nonprofit, this can prove to be a substantial amount of money in penalties. Hospitals that fail to meet the new standards could face fines upwards of $50,000.
John Kartch of the Americans for Tax Reform added that the law requires tax-exempt hospitals to regularly prove that they are necessary by filing paperwork with the IRS.
“It requires tax-exempt hospitals to do a community needs survey and file additional paperwork with the IRS every three years. This is to prove that the charitable hospital is still needed in their geographical area — ‘needed’ as defined by Obamacare and overseen by IRS bureaucrats,” said Kartch.
“Failure to comply, or to prove this continuing need, could result in the loss of the hospital’s tax-exempt status. The hospital would then become a for-profit venture, paying income tax — hence the positive revenue score” for the federal government, Kartch said. “Obamacare advocates turned over every rock to find as much tax money as possible.”
Of course, these hospitals are being set up to fail, as the resulting increase in the number of insured Americans as a result of the healthcare law is likely to minimize the need for tax-exempt hospitals. This will result in more hospitals operating as “for–profit” businesses, resulting in more tax money for the government.
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