Advocating for Health Equity in Kansas City
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Building a Healthier Kansas City Together
The Kansas City Community Benefit Coalition, recognizes that systemic inequities are a major barrier to health equality. Our coalition is dedicated to increasing community awareness and involvement in the Hospital Community Benefit process to ensure that the health needs of all community members are met.
What We Do
Community Benefit Reporting is essential for nonprofit hospitals to maintain their tax-exempt status and demonstrate their commitment to serving their communities. We advocate for transparency and accountability in how these benefits are reported and community involvement in determining how these funds are used to improve community health.
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Community Benefit Overview
Community benefit reporting is an IRS-mandated requirement for nonprofit hospitals in the U.S. to maintain their tax-exempt status. This requirement helps ensure that these hospitals contribute to their communities beyond providing healthcare by offering various benefits such as charity care, subsidized medical programs for low-income individuals, community health initiatives, educational programs for healthcare professionals, and medical research. These contributions must be documented and reported to avoid penalties, including potential loss of tax-exempt status.
The process for determining and reporting these benefits can vary. Each hospital develops its own Community Health Needs Assessment (CHNA), decides the priorities, and outlines these in an implementation plan. While the federal mandate is uniform, states have the autonomy to impose additional requirements or maintain different levels of tax exemptions, leading to variations in how hospitals across different states report their community benefits. For example, states like California and Illinois have specific requirements governing several aspects of community benefit reporting, whereas Kansas has minimal requirements, and Missouri only mandates reporting of charity care.
Missouri Community Benefit Overview
Community Benefit Requirement:
Missouri law does not specifically require nonprofit hospitals to provide community benefits.
Community Benefit Reporting:
Hospitals must report charity care annually. They are required to submit financial data, including details on charity care, bad debts, and total charges annually.
Community Health Needs Assessment (CHNA):
Missouri does not mandate nonprofit hospitals to conduct CHNAs.
Community Benefits Plan/Implementation Strategy:
No requirement for nonprofit hospitals to develop community benefit plans or implementation strategies.
Financial Assistance Policy:
Missouri law does not require nonprofit hospitals to adopt or implement financial assistance policies, nor does it require the dissemination of these policies.
Billing and Collections:
There are no state limitations on nonprofit hospital charges, billing, or collection practices.
Tax Exemptions:
Income Tax Exemption: Nonprofit corporations are exempt from state income tax if they are exempt from federal income tax.
Property Tax Exemption: Real and personal property used exclusively for charitable purposes is exempt, provided it is not held for private or corporate profit.
Sales Tax Exemption: Sales by or to charitable organizations for their charitable functions are exempt from state sales and use tax.
This overview highlights the state’s regulations as of June 2016 and is intended for informational purposes only, not as legal advice.
Kansas Community Benefit Overview
Community Benefit Requirement:
Kansas law does not specifically require nonprofit hospitals to provide community benefits.
Community Benefit Reporting:
There is no requirement for nonprofit hospitals in Kansas to report community benefits.
Community Health Needs Assessment (CHNA):
No requirement for nonprofit hospitals in Kansas to conduct CHNAs.
Community Benefits Plan/Implementation Strategy:
Kansas does not mandate the development of community benefit plans or implementation strategies.
Financial Assistance Policy:
There are no state requirements for nonprofit hospitals to adopt, implement, or disseminate financial assistance policies in Kansas.
Billing and Collections Limitations:
Kansas limits collection practices for nonprofit hospitals. Notably, wage garnishment for medical debts is restricted until two months post-recovery if illness prevents working for over two weeks.
Tax Exemptions:
Income Tax Exemption: Nonprofit hospitals are exempt from state income tax if exempt from federal income tax.
Property Tax Exemption: Real and personal property used exclusively for hospital purposes is exempt.
Sales Tax Exemption: Sales made by or for nonprofit hospitals for their exclusive use are exempt from state sales tax.
This summary, based on June 2016 data, is for informational purposes and should not be taken as legal advice.
Other states with no requirements around the Community Benefits process include Alaska, Arizona, Arkansas, Delaware, Hawaii, Iowa, Kentucky, Louisiana, Michigan, Nebraska, North Dakota, South Dakota, and Wyoming.
Source: Hilltop Institute's Hospital Community Benefit State Law Profiles
Resource: Community Health Assessment Toolkit - AHA Community Health Improvement