Sponsors (2)
The bill increases transparency about hospital finances, charity care, community benefit spending, and 340B activity to inform patients, communities, and policymakers, but it imposes meaningful reporting costs and compliance strain—particularly on smaller and rural hospitals—and risks revealing proprietary information or triggering actions that could reduce hospital resources for care.
Patients, taxpayers, and regulators will see audited hospital financials and CMS facility identifiers publicly reported, increasing transparency into hospital finances and operations.
Communities—especially low-income and chronically ill populations—will get disclosure of hospitals' spending on their top community health needs and actions taken, improving local accountability for community benefit work.
Low-income patients and policymakers will receive standardized data on the value and counts of hospital financial assistance, making it easier to assess charity care availability and hospital billing practices.
Hospitals—especially those with limited administrative capacity—will face increased reporting and auditing costs and ongoing administrative burden to collect, standardize, and submit facility-level financial, program, and service-line data.
Smaller tax‑exempt and rural hospitals may be strained by compliance requirements (even with up to three years to comply), risking diversion of resources from patient care or reductions in services in rural communities.
Detailed disclosures (advertising, service-line revenues, 340B data) could reveal competitive or proprietary business information, potentially harming hospital business positions or market competition.
Based on analysis of 3 sections of legislative text.
Requires tax-exempt hospitals to report detailed community-health, audited financials, CMS IDs, charity-assistance values, and application counts on Form 990, with extra facility-level detail for large systems.
Official title: To amend the Internal Revenue Code of 1986 to establish additional reporting requirements for hospital organizations, and for other purposes.
Introduced June 29, 2026 by Gregory Francis Murphy · Last progress June 29, 2026
Requires tax-exempt hospitals to report new, detailed information on their annual Form 990 returns, including how they addressed community health needs, audited financial statements, CMS identifiers, the dollar value of financial assistance provided, and counts of financial assistance applications. Large and high-revenue tax-exempt hospital systems must report many items both at the system level and for each hospital facility; large systems must also report the top three community health needs and spending on quality improvement, nonclinical programming, and other community benefits. Directs the Government Accountability Office to study and report, three years after enactment, on the administrative and compliance costs to Treasury and hospitals from the new reporting rules and to estimate the hypothetical corporate income tax liability for the 25 largest tax-exempt hospital organizations if they were taxable entities.