The American Medical Association (AMA) has expressed its support for stricter oversight of nonprofit hospitals' charity care policies.
The AMA aims to establish standardized financial assistance processes to ensure eligible patients can access the benefits they need. The organization also seeks to standardize the definition of "community benefit" and advocates for penalties or revocation of tax-exempt status for hospitals that do not comply with these standards.
Nonprofit hospitals enjoy tax advantages but must provide adequate charity care and community services. However, a report from the Lown Institute shows that many nonprofit hospitals return less to their communities than they receive in tax breaks.
The AMA highlights the need for a standardized process for financial assistance eligibility to address the lack of uniformity across hospitals. The organization also challenges the practice of retrospective payment denials by insurers and asserts that prior authorization should be sufficient for payment.
The AMA's efforts reflect a broader trend in the healthcare industry of advocating for fair treatment and compensation for healthcare providers. The implications of the AMA's reforms may reshape how nonprofit hospitals operate and benefit patients who rely on their services.