IRS establishes more stringent rules on nonprofit hospitals

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IRS issuing new forms for nonprofit hospitals. Source: Retro Medical Billing  

Nonprofits hospitals will have to produce more detailed information about compensation on the new Form 990, which the IRS unveiled on Dec. 20 for the 2008 tax year.

The IRS is also investigating the governance and hospital operations in an unprecedented manner. For example, the IRS will require hospitals to disclose whether board members saw the Form 990 before submission and to report the number of employees who earn $100,000 or more.

Now, there is a Centers for Medicare & Medicaid section on the 990 tax form — an intersection that requires greater vigilance on the part of nonprofit hospitals. The IRS is seeking information on whether hospitals have written policies for whistle-blowers, conflicts of interest, and the nature of its joint ventures.

The new 990 allows hospitals to use narrative form in multiple locations to explain how they assess the needs of the community and provide community benefit.