Form 990 reporting now optional
The Internal Revenue Service has announced that Part V, Section B (Part V.B) of Schedule H, Hospitals, of the 2010 Form 990, Return of Organization Exempt From Income Tax, is optional for the 2010 tax year. Many hospital trade associations sought changes to the revised Form 990 because they said the new Schedule H requirements went beyond what the statute requires and the new reporting requirements are onerous and redundant. The requirements include questions regarding a hospital facility's community health needs assessment, financial assistance policy, billing and collection and charges for medical care.
HCA to acquire Denver health system
Nashville-based hospital operator HCA has signed a non-binding memorandum of understanding with the Colorado Health Foundation to purchase for $1.45 billion the foundation's 40 percent stake in HCA-HealthONE in Denver. HCA-HealthONE, created as a joint venture between the foundation and HCA in 1995, is the largest healthcare system in the Denver area, with seven hospitals, 13 ambulatory surgery centers, more than 30 occupational medicine/rehabilitation, specialty and outpatient diagnostic imaging clinics and AirLife Denver, which provides critical care air and ground transportation for an eight-state region.
Study: Certificate-of-need process flawed
Originally intended to ensure access to care, maintain or improve quality and control capital expenditures on healthcare services and facilities, the certificate-of-need process has evolved into an arena where providers often battle for service-line dominance and market share, according to a new study conducted by the Center for Studying Health System Change. The CON approval process tends to be influenced heavily by political relationships, such as a provider's clout, organizational size or overall wealth and resources, rather than policy objectives, according to the study.
New health system emerges in Kentucky
Officials at three Kentucky healthcare organizations have approved plans to form a new healthcare delivery system. The system will consist of the University of Louisville Hospital/James Graham Brown Cancer Center, Jewish Hospital & St. Mary's HealthCare, based in Louisville, and the Saint Joseph Health System, based in Lexington. The agreement still must receive regulatory and church approvals before becoming effective, which could take 12 months. Catholic Health Initiatives will make an incremental capital infusion of $320 million in support of the system's services statewide. In addition, the new system will invest $200 million in capital to expand the academic medical center in Louisville and $100 million in statewide healthcare services.