Murphy Applauds Passage of His Non-Profit Hospital Transparency Bill in Ways and Means Committee

Washington, D.C. — Congressman Greg Murphy, M.D., applauds the passage of his bill, H.R. 9504, the Tax Exempt Hospital Transparency Act, legislation to increase non-profit hospitals’ transparency of community benefit spending.

"The majority of income from nonprofit hospitals comes from federal payments," said Congressman Greg Murphy, M.D. "Nonprofit hospitals receive significant tax benefits in exchange for providing meaningful community benefits and charitable care. Patients and taxpayers deserve transparency regarding how these institutions are meeting those obligations and serving the communities that rely on them. My legislation promotes greater accountability by improving transparency requirements and helping ensure nonprofit hospitals remain focused on their charitable mission. Increased transparency empowers patients, informs policymakers, and strengthens trust in our healthcare system. I am proud that this legislation passed in the Ways and Means Committee, and I look forward to advocating for its passage on the House floor."

"Tax-exempt status is a privilege, not a right. The large hospital empires in this country that operate as nonprofits and enjoy lucrative tax benefits due to that status owe the American taxpayer more transparency and accountability," said Ways and Means Committee Chairman Jason Smith. "I applaud Dr. Murphy for bringing his years of experience and expertise to the work the committee is doing to improve the oversight of our health care system and help address the rising cost of care that impacts so many working families across this country."

Background

• As of 2023, the U.S. hospital sector was a $1.4 trillion industry, with nonprofit hospitals making up nearly 60% of all community hospitals.
   
• Hospital prices have grown nearly 300% since 2000, more than any other part of the U.S. economy.
   

In order to maintain their tax-exempt status, non-profit hospitals must meet the requirements under IRC § 501(r) to maintain their tax-exempt status.

Tax-exempt hospitals must also annually disclose metrics and community benefits to the Internal Revenue Service (IRS) via Form 990, Schedule H, which details charity care, community health needs assessments, and facility policies.

Currently, nonprofit hospitals do not have to report on a facility-to-facility basis.