The AHA yesterday urged the Internal Revenue Service to publish guidance affirming that hospitals may participate in accountable care organizations without generating a tax cost or incurring “the catastrophic loss” of their tax-exempt status. “Such guidance will remove what appears to be a serious obstacle for nonprofit hospitals striving to coordinate care for their communities and make other improvements in delivering population health,” wrote Melinda Reid Hatton, AHA senior vice president and general counsel, in response to a recent IRS ruling that denied tax-exempt status to an ACO not participating in the Medicare Shared Savings Program. While an MSSP ACO would have received the opposite result, the IRS concluded that the ACO generated impermissible private benefit to physicians “without any discussion of how the community benefits from coordinated care and better management of health care costs,” AHA notes.

Related News Articles

Headline
A coalition of 14 health care organizations, including the AHA, today voiced support for the Accountable Care in Rural America Act, the companion to Senate…
Headline
A coalition of 15 health care organizations, including the AHA, today voiced support for the Rural ACO Improvement Act (S. 2648), legislation that would revise…
Chairperson's File
Hospitals and health systems are leading transformative efforts to provide better care at lower costs for patients and communities.   Some are working…
Headline
The Medicare Shared Savings Program generated $739.4 million in total net savings across 548 accountable care organizations in 2018, Centers for Medicare…
Headline
Medicare accountable care organizations report a number of successful strategies to reduce Medicare spending and improve quality of care for patients, which…
Headline
Beginning June 11, hospitals, physicians and other eligible providers may submit notices of intent to apply to participate in the Jan. 1, 2020 start date for…