The bill seeks to amend laws governing nonprofit hospitals by instituting new reporting requirements and imposing fees if a hospital's community benefit falls short of its potential property tax liability. Nonprofit hospitals will be mandated to report their charity care and community benefit expenditures to the Department of Public Health and Human Services, including detailed financial data on community health improvement services. If a hospital's reported community benefit does not exceed its potential tax liability, a fee equal to the difference will be charged, with funds directed to a newly established Critical Access Health Care Special Revenue Account.

Additionally, the bill clarifies definitions related to community benefits and introduces new terms, such as "potential tax liability," which reflects the property taxes a nonprofit hospital would owe if not tax-exempt. It requires hospitals to maintain written policies against discrimination based on a patient's ability to pay and to comply with financial assistance and community benefit policies. The Department of Revenue will prepare statements of potential tax liability to ensure compliance, and both the Department of Public Health and Human Services and the Department of Revenue will have rulemaking authority to facilitate these changes. The bill is set to take effect on January 1, 2027, with specific applicability for critical access hospitals.

Statutes affected:
LC Text: 50-5-101
SB0560_1(1): 50-5-101
SB0560_1(2): 50-5-101
SB0560_1(3): 50-5-101
SB0560_1(4): 50-5-101
SB0560_1(5): 50-5-101
SB0560_1(6): 50-5-101
SB0560_1(7): 50-5-101
SB0560_1(8): 50-5-101
SB0560_1(9): 50-5-101
SB0560_1: 50-5-101
SB0560_2(1): 50-5-101
SB0560_2(2): 50-5-101
SB0560_2(3): 50-5-101
SB0560_2(4): 50-5-101
SB0560_2: 50-5-101
SB0560_X(1): 50-5-101, 50-5-121
SB0560_X(10): 50-5-101, 50-5-121
SB0560_X(11): 50-5-101, 50-5-121
SB0560_X(12): 50-5-101, 50-5-121
SB0560_X(13): 50-5-101, 50-5-121
SB0560_X(14): 50-5-101, 50-5-121
SB0560_X(15): 50-5-101, 50-5-121
SB0560_X(2): 50-5-101, 50-5-121
SB0560_X(3): 50-5-101, 50-5-121
SB0560_X(4): 50-5-101, 50-5-121
SB0560_X(5): 50-5-101, 50-5-121
SB0560_X(6): 50-5-101, 50-5-121
SB0560_X(7): 50-5-101, 50-5-121
SB0560_X(8): 50-5-101, 50-5-121
SB0560_X(9): 50-5-101, 50-5-121
SB0560_X: 50-5-101, 50-5-121