By NextBestFitNonprofit hospital tax exemption & charity care rules (IRC §501(r))
amendedYear 4Federal tax code
Today
Nonprofit hospitals are exempt from income and property taxes in exchange for 'community benefit', much of it counted as charity care and Medicaid shortfall.
Under the plan
Charity care for covered services disappears; community-benefit standard redefined around public-health investment, or exemption reconsidered by Congress.
Trade-off
The main rationale for the exemption (uncompensated care) disappears; ending exemptions would raise revenue but cut hospital margins.