This bill revises laws concerning nonprofit hospitals, focusing on their community benefits and financial assistance obligations. It mandates that nonprofit hospitals report their charity care and community benefit expenditures to the Department of Public Health and Human Services, detailing financial assistance and community health improvement services. If a nonprofit hospital's community benefit does not meet or exceed its potential property tax liability, a fee will be imposed equal to the difference. The legislation also establishes a Critical Access Health Care Special Revenue Account to fund critical access hospitals, with fees collected from nonprofit hospitals contributing to this account.

Additionally, the bill introduces new definitions related to community benefits and grants rulemaking authority to the Department of Revenue and the Department of Public Health and Human Services. It clarifies that community benefits must be calculated based on net community benefit expenses and metrics reported on IRS Form 990. The bill also specifies that nonprofit hospitals must have written policies against discrimination based on a patient's ability to pay and removes certain deadlines for the Department of Health to adopt rules regarding financial assistance and community benefit standards, allowing for greater flexibility. The provisions will apply to critical access hospitals starting January 1, 2027, with additional sections effective by January 1, 2031, aiming to enhance accountability and ensure adequate community benefits in line with tax-exempt status.

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