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Numerous nonprofit hospitals in multiple states have been hit with class action lawsuits challenging their tax-exempt status as charity institutions, and more are expected to follow. Thomson American Health Consultants is offering an audio conference to help you learn where your hospital may be exposed, what policies and procedures you need to reform to preserve your tax-exempt status, and how to continue to provide necessary care for the uninsured.
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Americas not-for-profit hospitals, which for years have positioned themselves as the leading providers of uncompensated care for the uninsured and underinsured, have come under attack in state and federal courts from critics who say they are greatly overcharging the poor people they claim to be helping.
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As of July 22, 39 federal class action lawsuits had been filed against 39 hospitals and health systems in 20 states, accused of failing to provide government-required charity care to uninsured patients.
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The American Hospital Association has adopted principles and guidelines on billing that confirm the commitment of Americas hospitals to serve their communities with compassion and professionalism.
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The provision of charity care or a sliding-scale discount for patients deemed bad debtors is not a requirement for hospital tax exemption at the federal level, Harvard Business School professor Nancy Kane told the House Ways and Means Committee's Subcommittee on Oversight in a June 22 hearing.
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Attorney Richard Scruggs, who is coordinating the federal class action lawsuits against nonprofit hospitals over their billing and collection practices, has suggested that interested citizens ask these questions of their local hospital administrator.
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A Medicare disease management pilot project is producing information that may be helpful in expanding disease management to the Medicaid population.
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At least two congressional committees have held hearings into hospital billing and collection practices.
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While the 39 federal class action lawsuits filed this year are based primarily on nonprofit hospital billing and collection practices, questions about the tax-exempt status of nonprofit hospitals have been litigated in local and state courts in recent years. Pennsylvania was a hotbed for such litigation a few years ago but now is relatively quiet.
