March 12, 2015

T.J. Sullivan Quoted in Modern Healthcare

Washington, D.C., partner T.J. Sullivan was quoted in a Modern Healthcare article, titled, “Test the value of what tax-exempt hospitals give communities, alliance urges.” The article discussed how the Alliance for Advancing Nonprofit Health Care is contacting members of Congress and hospital CEOs with a proposal to revamp the oversight of tax-exempt hospitals.  The proposal calls to eliminate the requirements introduced as part of the Affordable Care Act and replace them with a test of whether the dollar value of the hospitals’ benefit to local communities is enough to offset the lost federal revenue from their tax exemption.

T.J. does not like the proposal and defended new Internal Revenue Code Section 501(r) as the better approach:  “The new statute and the guidance required the IRS to balance the interest of patient advocacy and public health and the rights of the poor with the interest of the hospital community. I don't think we need a quantitative test. We have a lot of transparency, a lot of reporting. We're going to know what hospitals are doing going forward,” T.J. said.


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