IRS Releases Long-Awaited Report on Hospital Pay and Services

IRS officials said in an interview that, among the 15 percent of hospitals that did not use the rebuttable-presumption process, at least one hospital was found by the tax agency to have paid excessive compensation.

40-Year-Old Ruling

The IRS study also looked at how nonprofit hospitals are following the current “community benefit standard,” which the tax agency uses to determine a hospital’s eligibility for tax-exempt status. Under a 40-year-old IRS ruling, hospitals must show that they provide benefits to the people and neighborhoods in the region they serve.