What Counts Hotline Featured Question
Subsidized Health Services
Question: Our critical access hospital provides needed care to our rural area. Can we report the entire hospital as subsidized health services?
Recommendation: We understand the desire to accurately and comprehensively report our community benefit activities and programs. And yes, critical access hospitals are a vital asset to their communities. However, we do not recommend reporting an entire hospital as subsidized health services. 
We do recommend following the IRS 990 Schedule H instructions, to calculate and report as subsidized health services the "…clinical services provided despite a financial loss to the organization." … "Subsidized health services can include qualifying inpatient programs … and outpatient programs ... Subsidized health services generally exclude ancillary services that support inpatient and ambulatory programs such as anesthesiology, radiology, and laboratory departments."
Resources:
See What Counts Q&A Library for more information on this and other topics.
Note: The information provided above does not constitute legal or tax advice. The information is provided for informational/educational purposes only and cannot be relied upon. Please consult with counsel regarding your organization's particular circumstances.
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