Community benefit describes the amount of services and support a non-for-profit hospital provides to its community. Community benefit areas have been defined by 5 policy groups who qualify the benefit. These groups are the: American Hospital Association, Healthcare Financial Management Association, IRS, Voluntary Hospitals of America, and Catholic Healthcare Association. Although all of these groups determine community benefit standards, the IRS will have the greatest impact. Not-for-profit hospitals are now required to fill out Schedule H of the IRS 990 form. Although specific changes have not yet occurred to community benefit standards, changes may be in the works. There has been increasing concern surrounding if these hospitals are truly delivering enough community benefit for the various tax benefits they receive.
Charity care is defined by Cleverley, Song, and Cleverley (2011), as unreimbursed cost of providing care. Individuals who qualify for charity care receive either free or discounted care services. The homeless, illegal immigrants and unemployed are just a few examples of this population. On my unit, when we care for these individuals, the hospital not only cover all or some of the costs of the care they received while in the hospital, but also cover the cost of medications (pain medicine and or anticoagulation medication); in addition to the follow up care they may need in the orthopedic or medicine clinics. Managers need to keep accurate track of every cost associated with the care each charity patient receives. Currently, only the cost of the service is recognized (Cleverley, Song, and Cleverley, 2011). To accurately demonstrate the cost of care provided, detailed reports that account for every charge need to be created and appropriately maintained so they can be presented on the appropriate tax forms.
Medicaid is the largest well