Sponsors (2)
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
The bill increases transparency about hospital finances, charity care, community benefit spending, and 340B activity—giving patients and policymakers better information—at the cost of sizable reporting burdens and potential operational strain (especially for smaller/rural hospitals) and risks of exposing proprietary information.
Patients, taxpayers, and policymakers will get substantially greater transparency into hospital finances and operations because hospitals must report audited financials, CMS IDs, service- and program-level data, and counts/values of financial assistance.
Low-income individuals and local communities will see how large hospitals spend on their top community health needs and what actions were taken, enabling better local accountability for community benefit efforts.
Policymakers and federal managers will have quantified data about the federal workload and hospital compliance costs because GAO will study and report on implementation burdens, helping inform better timelines and funding choices.
Hospitals — especially those with limited administrative capacity — will face significant new reporting and audit costs and administrative burdens from collecting and submitting facility-, program-, and service-line financial data (including responding to GAO data requests).
Smaller and rural tax-exempt hospitals may be strained by compliance requirements (even with up-to-three-year phase-in), risking diverted resources from care or reduced local services.
Detailed disclosures (e.g., service-line revenues, advertising spend, and 340B-related figures) could reveal competitive or proprietary business information, potentially harming hospitals' market positions.
Based on analysis of 3 sections of legislative text.
Requires tax-exempt hospitals to disclose detailed CHNA responses, audited financials, CMS IDs, financial assistance totals and application counts, and specified community benefit spending on their Form 990.
Requires tax-exempt hospitals to report expanded information on their annual Form 990 about community health needs, financial assistance provided, audited financial statements, and other community benefit spending; large and high-revenue hospital systems must report many items both at the organization level and separately for each hospital facility. Also directs the Government Accountability Office to study implementation costs and estimate hypothetical tax liabilities for the largest tax-exempt hospital systems and report to congressional tax-writing committees three years after enactment.