If "Yes," did the organization's charity care expenses exceed the budgeted amount? (Part I, line 5b)

DISCUSSION: In answering this question, consider the following: Most hospitals will have a budget for patient revenues that include the amounts anticipated for free or discounted care. Such budget is not used as a cap to limit charity care; rather it is a projection of what a hospital believes it will spend for those services based on historical experience. Hospitals frequently exceed their budget projections.

The question asks about the "organization's policy." It would appear that a filing organization could answer "yes" to this question if any of its hospitals included in the filing could answer "yes." You may want to disclose this under Part VI, line 1.

NARRATIVE REQUIRED: No, but if you answer "no" to this question consider providing some narrative in Part VI, line 1.


The amount of free or discounted care provided to patients during the tax year did not exceed the annual budgeted amount. The annual budgeted amount is an estimate used for financial budgeting purposes only and has no implication on the maximum or minimum amount of free or discounted care the organization provides to qualifying patients each year.

INSTRUCTIONS: Click here for the applicable IRS Schedule H instructions.

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