Posted by Jason Greis on October 13, 2010 under Articles | 
Thunder rolled down from Capitol Hill last week when Sen. Charles Grassley (R–Iowa) claimed that certain hospital systems and associations were misapplying the intent of Section 501(r)(5)(B) that prohibits the use of gross charges under the Patient Protection and Affordable Care Act. In their comments to the IRS regarding implementing regulations, the American Hospital Association (AHA) urged the IRS to apply a “gross charges” basis to charge those who do not qualify for financial assistance, and to use it as a starting place for calculating assistance to those who do. Read More...
Tags: 501(c)(3), charity care, grassley, greisguide, greisguidetoltachs, hospital, jason greis, ltac, LTACH, LTCH, mcguirewoods, milton cerny, Patient Protection and Affordable Care Act, ppaca, tax exempt
Posted by Jason Greis on March 23, 2010 under Articles |
Late last week the Illinois Supreme Court (the Court) issued its long-anticipated decision in the case of Provena Covenant Medical Center v. Illinois Department of Revenue (Provena). The Court’s opinion, delivered by Justice Karmeier, upheld the Illinois Department of Revenue (Revenue) Director Brian Hamer’s ruling that Provena Covenant Medical Center, located in Urbana, Ill. (PCMC), did not provide enough charity care services to justify the continuation of its charitable purpose property tax exemption. The Court’s opinion noted that PCMC’s parent company, Provena Hospitals, was the true property owner of PCMC, and that Provena Hospitals itself was not a charitable institution nor did it primarily serve charitable purposes. Furthermore, the Court held that PCMC provided only minimal levels of charity care thus the property was not being primarily used for charitable purposes. The Court’s decision will be problematic for not-for-profit hospitals, including LTACHs, because it leaves a key question unanswered—just how much charity must a hospital provide to justify an exemption? The decision is expected to encourage local taxing bodies to pursue efforts to remove tax exemptions of not-for-profit hospitals and other providers. Read More...
Tags: 501(c)(3), ALF, exemption, greisguide, greisguidetoltachs, hospital, illinois, jason greis, jeff clark, jim riley, joseph hylak-reinholtz, julie ann sullivan, korzen, long term acute care hospital, ltac, LTACH, LTCH, mcguirewoods, not-for-profit, property tax, provena, skilled nursing, snf
Posted by Jason Greis on March 15, 2009 under Articles |
The American Reinvestment and Recovery Act of 2009 (“ARRA”), which became law on February 19, 2009, restricts executive compensation for certain entities participating in the federal government’s Troubled Asset Relief Program (“TARP”). Generally, these restrictions limit the types and value of certain compensation paid to executives and other highly compensated individuals in these entities. The TARP entities are required to abide by these restrictions as a condition of receiving federal funds under the ARRA. Several of the specific limitations on executive compensation in the ARRA are as follows: Read More...
Tags: 4958, 501(c)(3), american recovery and reinvestment act, ARRA, compensation, disqualified person, executive, greisguide, greisguidetoltachs, hospital, jason greis, ltac, LTACH, LTCH, mcguirewoods, not-for-profit, rebuttable presumption, tarp, tax exempt, troubled asset relief program
Posted by Jason Greis on February 15, 2009 under Articles |
On February 12, 2009, the Internal Revenue Services released its long-anticipated final report (the “Report”) containing the results of a two-year study focusing on community benefit reporting practices and executive compensation practices of tax-exempt hospitals. The results are based on a survey the IRS sent to 500 tax-exempt hospitals in May 2006, and builds on analysis of results first released by the IRS in an interim report in July 2007. Read More...
Tags: 4958, 501(c)(3), 501(c)(4), 69-545, community benefit, draft discussion, grassley, greisguide, greisguidetoltachs, hospital, internal revenue service, irs, jason greis, ltac, LTACH, LTCH, rebuttable presumption, tax exempt
Posted by Jason Greis on January 6, 2009 under Articles |
Two of my McGuireWoods colleagues wrote the below Client Alert discussing the IRS’s continued focus on non-profit executive compensation. Tax-exempt 501(c)(3) LTACHs should carefully follow both the legislative actions of Senate Finance Committee members Senators Charles Grassley and Senator Max Baucus, both of whom support and have promised significant changes to the way non-profit hospitals are organized and managed. Senator Grassley and his staff released the attached document entitled “Tax-Exempt Hospitals: Discussion Draft” on June 20, 2007, which is probably instructive regarding the type of far-reaching legislation Senator Grassley is likely to propose at some point in 2009. Read More...
Tags: 4958, 501(c)(3), disqualified person, excess benefit transaction, excise tax, executive compensation, greisguide, GreisGuide to LTACHs, hospital, internal revenue service, irs, ltac, LTACH, LTCH, non-profit, not-for-profit, reasonableness, rebuttable presumption, tax exempt
Posted by Jason Greis on December 29, 2008 under Articles |
Three of my colleagues recently wrote the below Client Update. Non-profit LTACHs should closely monitor the ongoing legislative efforts of the Senate Finance Committee and its lead advocate of establishing quantitative charity care and community benefit standards, Senator Charles Grassley. Non-profit LTACHs should also be congnizant of ongoing state and IRS activities to update financial reporting requirements for not-profit hospitals. Read More...
Tags: 501(c)(3), 56-185, charity care, grassley, greisguide, GreisGuide to LTACHs, hospital, irs, ltac, LTACH, LTCH, standard, tax exempt, Tax-Exempt Hospitals: Discussion Draft
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