Charity Care. The local newspaper of a large urban area printed a story titled âCharity Care by Hospitals Stirs Debate.â The story quotes one legislator who wants âto ensure that the stateâs nonprofit hospitals are fulfilling their obligation that is to provide charity care at least equal to the tax exemption they receive as a nonprofit entity.â The following table is provided:
a. What are the obligations of IRC Sec. 501 (c) (3) organizations to provide charity care?
b. Do you agree that the hospitals are not fulfilling their obligations? Why or why not?
c. What additional information would you like to have? Do you expect to find this information in the audited annual financialstatements?