Instructions For Schedule H (Form 990) - 2016 printable pdf download

2016

Department of the Treasury

Internal Revenue Service

Instructions for Schedule H

(Form 990)

Hospitals

General Instructions

Part V, Section D, requires an

Section references are to the Internal Revenue

Code unless otherwise noted.

organization to list all of its non-hospital

Note. Terms in bold are defined in the

health care facilities that it operated during

Contents

Page

Glossary of the Instructions for Form 990.

the tax year, whether or not such facilities

Future Developments . . . . . . . . . . . .

were required to be licensed or registered

Purpose of Schedule . . . . . . . . . . . .

Background. The Patient Protection and

under state law. The organization should

Specific Instructions . . . . . . . . . . . . .

Affordable Care Act (Affordable Care Act),

not complete Part V, Section B, for any of

Part I. Financial Assistance and

enacted March 23, 2010, PL. No.

these non-hospital facilities.

Certain Other Community

111-148, added section 501(r) to the

Benefits at Cost . . . . . . . . . . . .

Code. Section 501(r) includes additional

Purpose of Schedule

Optional Worksheets for Part I,

requirements a hospital organization

Hospital organizations use Schedule H

Line 7 (Financial Assistance

must meet to qualify for tax exemption

and Certain Other Community

(Form 990) to provide information on the

under section 501(c)(3) in tax years

Benefits At Cost) . . . . . . . . . . . .

activities and policies of, and community

beginning after March 23, 2010. These

Part II. Community Building

benefit provided by, its hospital facilities

additional requirements address a hospital

Activities . . . . . . . . . . . . . . . . .

and other non-hospital health care

organization's financial assistance policy;

Part III. Bad Debt, Medicare, &

facilities that it operated during the tax

policy relating to emergency medical care;

Collection Practices . . . . . . . . . .

year. This includes facilities operated

billing and collections; and charges for

Part IV. Management Companies

either directly or through disregarded

medical care. Also, for tax years beginning

and Joint Ventures

. . . . . . . . . .

entities or joint ventures.

after March 23, 2012, the Affordable Care

Part V. Facility Information . . . . . . . . .

Act requires hospital organizations to

Who Must File

Part VI. Supplemental

conduct community health needs

Information . . . . . . . . . . . . . .

An organization that answered “Yes” on

assessments.

Worksheet 1. Financial Assistance

Form 990, Part IV, line 20a must complete

at Cost (Part I, Line 7a) . . . . . . .

Because section 501(r) requires a

and attach Schedule H to Form 990.

hospital organization to meet these

Worksheet 2. Ratio of Patient Care

Schedule H (Form 990) must be

Cost to Charges . . . . . . . . . . .

requirements for each of its hospital

completed by a hospital organization

facilities, Part V, Facility Information, has

Worksheet 3. Medicaid and Other

that operated at any time during the tax

Means-Tested Government

been expanded to include a Section A,

year at least one hospital facility. A

Health Programs (Part I, Lines

Hospital Facilities. In this section a

7b and 7c) . . . . . . . . . . . . . . .

hospital facility is one that is required to be

hospital organization must list its hospital

licensed, registered, or similarly

Worksheet 4. Community Health

facilities; that is, its facilities that at any

Improvement Services and

recognized by a state as a hospital. A

time during the tax year, were required to

Community Benefit

hospital organization may treat multiple

be licensed, registered, or similarly

Operations (Part I, Line 7e) . . . .

buildings operated by a hospital

recognized as a hospital under state law.

Worksheet 5. Health Professions

organization under a single state license

Part V also includes Section B, Facility

Education (Part I, Line 7f) . . . . .

as a single hospital facility.

Policies and Practices, for reporting of

Worksheet 6. Subsidized Health

information on policies and practices

The organization must file a single

Services (Part I, Line 7g) . . . . . .

addressed in section 501(r). The hospital

Schedule H (Form 990) that combines

Worksheet 7. Research (Part I,

organization must complete a separate

information from:

Line 7h)

. . . . . . . . . . . . . . . .

Section B for each of its hospital facilities

Worksheet 8. Cash and In-Kind

1. Hospital facilities directly operated

or facility reporting groups listed in

Contributions for Community

by the organization.

Section A.

Benefit (Part I, Line 7i) . . . . . . .

2. Hospital facilities operated by

Index . . . . . . . . . . . . . . . . . . . . .

Section 6033(b)(15)(B) also requires

disregarded entities of which the

hospital organizations to submit a copy of

organization is the sole member.

Future Developments

their audited financial statements to the

3. Other health care facilities and

IRS. Accordingly, a hospital organization

programs of the hospital organization or

For the latest information about

that is required to file Form 990 must

any of the entities described in 1 or 2,

developments related to Form 990 and its

attach a copy of its most recent audited

even if provided separately from the

instructions, such as legislation enacted

financial statements to its Form 990. If the

hospital's license.

after they were published, go to

organization was included in consolidated

audited financial statements but not

4. Hospital facilities and other health

separate audited financial statements for

care facilities and programs operated by

What's New

the tax year, then it must attach a copy of

any joint venture treated as a

the consolidated financial statements,

partnership, to the extent of the hospital

Sec. 501(r) final regulations are effective

including details to consolidation (see

organization's proportionate share of the

for tax years beginning after 12/29/15.

instructions for Form 990, Part IV,

joint venture. Proportionate share is

With regard to this, changes were made

line 20b).

defined as the ending capital account

throughout the instructions.

percentage listed on the Schedule K-1

(Form 1065), Partner's Share of Income,

Jan 27, 2017

Cat. No. 51526B

Instructions For Schedule H (Form 990) - 2016

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