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Introduction

Section 5. BILLING AND

Internal Revenue Bulletin 2010-24 · 2026-10-03 edition · updated 2026-10-04 · United States

COLLECTION

Section 501(r)(6) requires a hospital organization to forego extraordinary collection actions against an individual before the organization has made reasonable efforts to determine whether the individual is eligible for assistance under the hospital organization’s financial assistance policy.

The Technical Explanation states that “extraordinary collections include lawsuits, liens on residences, arrests, body attachments, or other similar collection processes.” Technical Explanation at 82. The Technical Explanation also states that “[i]t is intended that for this purpose, ‘reasonable efforts’ includes notification by the hospital of its financial assistance policy upon admission and in written and oral communications with the patient regarding the patient’s bill, including invoices and telephone calls, before collection action or reporting to credit agencies is initiated.” Technical Explanation at 82.

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▸Contents — Internal Revenue Bulletin 2010-24

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