Senators Elizabeth Warren (D-MA) and Chuck Grassley (R-IA) have long expressed concerns about the tax-exempt status of nonprofit hospitals. The lawmakers recently sent a letter to the IRS reiterating earlier allegations that while nonprofit hospitals are required to provide a “community benefit,” some have restricted care and increased costs. To remedy the situation, the lawmakers suggest the IRS conduct more audits, reevaluate hospitals’ status and, if applicable, impose penalties. In addition, they believe that the IRS should set “clear standards.” For example, the tax agency should prohibit nonprofit hospitals from denying care based on patients’ medical debt.
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