Spartz Introduces Legislation to Increase Transparency of Non-Profit Hospitals

Yesterday, U.S. Rep. Victoria Spartz (IN-05) introduced the Non-Profit Hospital Tax Exemption Transparency Act as part of her package to increase competition in health care.

Non-profit hospitals have accumulated large monopoly powers in many health care markets, although, according to the 2021 Health Affairs study, they spend considerably less on charity care than for-profit hospitals. The current guidelines for community benefit qualifying hospitals for tax-exempt status are vague and could be abused by stakeholders.

Based on multiple studies, including RAND studies performed by the Employers’ Forum of Indiana, Indiana has some of the highest hospital prices and health care monopoly issues in the nation.

This legislation clarifies the standards by which non-profit hospitals can qualify for tax exemption.

The full legislative text can be viewed online at spartz.house.gov/sites/evo-subsites/spartz.house.gov/files/evo-media-document/FINAL%20CBS%20Bill%20FINAL%5B93%5D.pdf.