Nonprofit Hospital Hearings Set for May 26

WASHINGTON-House Ways and Means Committee Chairman Bill Thomas (R-Calif.) announced that the committee would hold a hearing reviewing the tax-exempt hospital sector. This hearing, scheduled for May 26, was first threatened more than a year ago in conjunction with a potential hearing on the tax-exempt status of credit unions. The committee previously held a hearing April 20 on the overall tax-exempt sector, in which credit unions were only mentioned in passing. "This continues the series of hearings examining the tax-exempt sector. Congress needs a better understanding of the subsidy for tax-exempt hospitals," Thomas said. "Tax-exemption is an important benefit and the Congress has a responsibility to assure the American taxpayer that the tax-exempt hospital sector is living up to its community responsibilities." The committee's announcement on the hearing read, "The Committee is continuing its series of hearings to review the tax-exempt sector. These hearings will examine particular components of the tax-exempt sector, such as charitable institutions, cooperatives, and other exempt organizations, to learn more about what they do, how they have evolved over time, if the organizations have become increasingly commercial in their operations, and the current rationale for their tax-exempt status." The Government Accountability Office, the Centers for Medicare and Medicaid Services, the Internal Revenue Service, academic experts and other interested parties have been invited to provide oral testimony. Others may provide written statements to the committee. The hearing will examine: *