Section 3. FINANCIAL ASSISTANCE
Internal Revenue Bulletin 2010-24 · 2026-10-03 edition · updated 2026-10-04 · United States
POLICY
Section 501(r)(4) requires a hospital organization to establish a financial assistance policy and a policy relating to emergency medical care.
Specifically, section 501(r)(4)(A) requires a hospital organization to have a written financial assistance policy that includes the following:
i. eligibility criteria for financial assistance, and whether such assistance includes free or discounted care; ii. the basis for calculating amounts charged to patients; iii. the method for applying for financial
assistance; iv. in the case of an organization which does not have a separate billing and collections policy, the actions the organization may take in the event of nonpayment, including collections action and reporting to credit agencies; and v. measures to widely publicize the policy within the community to be served by the organization.
Section 501(r)(4)(B) requires a hospital organization to have a written policy requiring the organization to provide, without discrimination, care for emergency medical conditions (within the meaning of section 1867 of the Social Security Act (42 U.S.C. 1395dd)) to individuals regardless of their eligibility under the financial assistance policy described in section 501(r)(4)(A). The Technical Explanation states that “[t]he policy must prevent discrimination in the provision of emergency medical treatment, including denial of service, against those eligible for financial assistance under the facility’s financial assistance policy or those eligible for government assistance.” Technical Explanation at 82.
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