Train Wreck: The Threat of Charitable Care

As I have often pointed out, he who pays the piper calls the tune. In this case, Government is paying more of the bills, and government hates competition. What competition? Charitable hospitals. Consequently, the IRS is working to suppress charity.

The Daily Caller has an article about how the IRS is going to start demanding an “assessment” from charitable hospitals to justify the “need” in their geographic areas. Fines are levied if the IRS is not satisfied with the “need” for the hospitals’ services. The article points out that the charitable hospitals will no longer be permitted to simply choose to give care. They will be required to have a written policy on who pays for what, and the IRS must approve it. If IRS requirements are not met, the organization will be threatened with fines and a loss of its tax exempt status.

The article is surprisingly candid. It points out that these hospitals are a threat to the PPACA because pro bono care to the uninsured reduces their need for insurance, and their incentive to “sign up”. In other words, it is in the interest of “The Secretary” of HHS to make sure that charitable care is minimized to drive business her way. The Secretary has hired an enforcer to plug that leak – the IRS.

It is supremely ironic that a law that is supposedly justified by the need to ensure “coverage” for the indigent will likely end up closing a large number of charitable hospitals, not because they can’t find business, but because they are not permitted to freely provide charitable care.

Comments are closed.