Notice Clarifies Provider List Requirements for Hospital Facilities under Section 501(r)

On December 31, 2014, the Internal Revenue Service (IRS) issued final regulations under Section 501(r) of the Internal Revenue Code (IRC), which requires a hospital facility to establish a written financial assistance policy (FAP). Under the final regulations, a hospital facility’s FAP must apply to all emergency and medically necessary care provided in the hospital facility, but only to the extent the care is provided by the hospital facility itself or a substantially-related entity. Further, § 1.501(r)-4(b)(1)(iii)(F) of the final regulations require a hospital facility’s FAP to include a list of providers, other than the hospital facility itself, delivering emergency or other medically necessary care in the hospital facility and specify which providers are covered by the hospital facility’s FAP and which are not (“Provider List”).

Please click here to read the full Alert, originally published by American Health Lawyers Association, and reprinted with permission.