Suppose you are the president and CEO of St Michaels\'s Hospital for Children. H

Question

Suppose you are the president and CEO of St Michaels's Hospital for Children. How would you, as the CEO of a nonprofit hospital, explain to the public in a press release that you are following the requirements of tax-exempt status? Give hypothetical examples of how your organization is meeting the requirements (ex. your organization is providing community benefits by...).

Submit a press release that covers the above scenario. In the press release make sure you provide sound logic behind the positions you are presenting. This press release is what you would read to the press and offer to them to take along. Utilize the textbook information and the additional resources to provide talking points for your submission. This submission should be two pages maximum, double spaced, 12 point font, 1in margins, word or pdf file. Grammar, spelling and format will also matter in your submission. Cite your sources, if any, using a bibliography formatted in APA style.

Explanation / Answer

Tax exempt status is granted to St. Michael’s Hospital for Children as the services provided by us enhances community values and goals. As a health care entity we are fully committed to serve our patients and we never pursue our private interests. We operate exclusively for health care reasons and we do not engage in any prohibited transactions.

The local and state tax benefit that is received by St. Michael’s Hospital for Children is used to provide charity care and uncompensated care. Our collection policy is not all aggressive (like many for profit hospitals). Our charges to patients who are eligible for financial assistance is limited to the ceiling (or the maximum limit) of the lowest amount that is billed to insured patients.

Our hospital adheres to the revenue ruling 56-185 and provides care to those patients who cannot afford to pay for it. We also adhere t0 revenue ruling 69-545 as we have emergency rooms and hence we promote health that is deemed beneficial to the community. (Anheier, 2005)

St. Michael’s Hospital for Children, on a policy basis, does not engage in any form of prohibited transactions like participating in political campaigns, attempting to influence any legislation, pay compensation beyond reasonable salary levels and providing services on a preferential basis.

Reference:

1. Anheier, H. (2005). Nonprofit organizations. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.452.6420&rep=rep1&type=pdf

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