Tag Archives: IRS

IRS Denies Exempt Status for Non-MSSP Accountable Care Organizations

In April, the IRS released a private letter ruling denying section 501(c)(3) status to an accountable care organization (“ACO”) that contracted with third-party payers outside of the Medicare Shared Savings Program (“MSSP”). I.R.S. Priv. Ltr. Rul. 2016-15-022 (Jan. 15, 2016). The ACO was formed by a non-profit, tax-exempt health system to coordinate a clinically integrated … Continue reading this entry

Telemedicine Providers: Are My Doctors Employees or Independent Contractors?

Many telehealth companies, particularly those with multi-state footprints, look to an independent contractor model when developing their network of physician providers. An independent contractor model (using 1099 contractors) can offer lower overhead costs because the telehealth provider need not shoulder the same requirements of a W-2 employer model. It also provides scalability when the provider … Continue reading this entry

How Does the King v. Burwell Decision Affect the Affordable Care Act?

The Supreme Court handed the Obama administration a key victory this morning, upholding the tax credits that allow many low-income Americans to purchase health care insurance in states where the federal government is running the insurance marketplace. These tax credits, available to Americans with household incomes between 100% and 400% of the federal poverty line, operate … Continue reading this entry

Cooperative Hospital Service Organizations: A Hospital Joint Venture Option

Cooperative Hospital Service Organizations (CHSOs) are organizations that are available for hospitals considering certain types of joint ventures with other hospitals. If the terms for their use strictly meet the regulatory requirements, CHSOs can provide both tax exemption and Antikickback Statute Safe Harbor protection for such joint ventures. CHSOs must be organized and operated on a … Continue reading this entry

Appellate Courts Split on Validity of Key ACA Regulation

CMS Releases Medicare Part B Supplier Billing and Payment Data
In two important decisions issued July 22, 2014, both addressing the validity of a key regulation promulgated under the Patient Protection and Affordable Care Act (ACA), two federal appeals courts reached opposite conclusions, possibly setting the stage for another ACA showdown in the Supreme Court. The two cases, Halbig v. Burwell (formerly Halbig v. Sebelius) … Continue reading this entry

Rules Tax-Exempt Health Care Organizations Need to Know

It’s that time again – another election year. And if your organization is exempt under Section 501(c)(3) of the Code (“Exempt Organization” or “EO”), the EO cannot participate in, or intervene in, any political campaign on behalf of or in opposition to a candidate for public office. The EO cannot distribute partisan materials, provide or … Continue reading this entry

IRS Releases Helpful Guidance for Tax-Exempt Hospitals

The IRS released guidance at the end of 2013 that is helpful for tax-exempt hospitals in complying with the detailed additional federal tax requirements set forth in section 501(r) of the Internal Revenue Code. The guidance (1) sets forth specific proposed procedures for correcting and disclosing instances of failure to comply with the requirements and … Continue reading this entry