YourVoice.Now Summary
Transparency & AccountabilityRequires nonprofit hospitals to disclose charity care, service-line finances, and 340B drug-program details to the IRS.
Transparency & Accountability
- Charity-care disclosure — Tax-exempt hospitals must report financial-assistance spending and application approvals and denials
- Community-benefit disclosure — Large nonprofit hospitals must report spending on their top three community health needs
- Health service line reporting — High-revenue hospitals must report revenue and costs for each clinical service line
- 340B program disclosure — High-revenue hospitals must report drug-discount volumes, net payments, and compliance costs
- Advertising-cost disclosure — High-revenue hospitals must report allowable and unallowable advertising costs
- GAO study — Report due on compliance costs and the tax the 25 largest nonprofit hospitals would owe if taxed
The details
Nonprofit hospitals don't pay federal income tax. In exchange, they're expected to serve their communities. This bill would require them to report far more about how they do that. It creates new IRS reporting rules for tax-exempt hospitals. Every such hospital would have to disclose its charity-care spending and how many financial-aid applications it approved or denied. It would also report how it is meeting community health needs. Large hospitals with more than 100 beds would add details on spending for their top health priorities and community programs. The biggest hospitals, those with over $100 million in patient revenue, face the most reporting. They would break down revenue and costs by service line, report advertising costs, and disclose details about the federal 340B drug discount program. A government watchdog would also study compliance costs and estimate the taxes the 25 largest nonprofit hospitals would owe if they were not tax-exempt.
Congressional Summary
Tax Exempt Hospital Transparency ActThis bill requires tax-exempt hospital organizations to report additional information to the Internal Revenue Service.The bill defines a tax-exempt hospital organization as an organization that is licensed or recognized as a hospital and is required toconduct a community health needs assessment and adopt a strategy to meet the needs identified in the assessment,have a written financial assistance policy,limit charges for emergency and medically necessary care provided to individuals eligible for financial assistance and prohibit the use of gross charges,meet certain billing and collection requirements, andfile IRS Form 990 (Return of Organization Exempt From Income Tax).Under the bill, a tax-exempt hospital organization must include with Form 990 certain identifying information anda description of how the organization addresses the needs identified in the most recent community health needs assessment, the needs not addressed, and the reasons why needs are not being addressed;audited financial statements;the value (at cost) of the financial assistance provided; andthe numbers of completed financial assistance applications received, granted, and denied during the tax year.Further information reporting requirements are imposed on certain large or high-revenue tax-exempt hospital organizations.Finally, the bill requires the Government Accountability Office to (1) study and report the costs associated with the additional information reporting requirements, and (2) estimate the amount of tax revenue that would be generated from the 25 tax-exempt hospital organizations with the highest gross revenue if such organizations were not exempt from tax.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2026-06-29
- Date Added
- 2026-07-21
- Source
- Congress.gov →
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