Skip to Content

New Requirements for 501(c)(3) Hospitals under the Affordable Care Act

Section 501(r) of the The Affordable Care Act (ACA) added new requirements that hospitals must meet in order to maintain status as a 501(c)(3) charitable organization. Each individual hospital must separately comply with the requirements, however, multiple buildings that operate under a single license may be treated as a single hospital facility. A failure to comply with any of the new requirements could result in the imposition of a $50,000 excise tax. The new requirements of 501(r) are as follows:

  1. Conduct a Community Health Needs Assessment (CHNA) and adopt an implementation policy every three years
  2. Establish a written financial assistance policy (FAP) and emergency medical care policy
  3. Limits the amount of charges for emergency care or medically necessary care to eligible individuals under a hospitals FAP
  4. Make reasonable efforts to determine if a patient is eligible for assistance under FAP before engaging in extraordinary collection activities.

Please see the resources below for more detailed information on the new requirements. For questions please Contact Ivy Baer, J.D., M.P.H. at

News and Updates

Teleconference: May 9, 2013 IRS Proposed Rule/Community Health Needs Assessment
Presentation slides (available to AAMC members only)


On Patient Care

Testimony and Correspondence