Community Benefit

Page Updated: April 22, 2024

CHA Advocacy Principle: Community benefit funding decisions should rest with hospital leadership and governing bodies, and priorities should be set by local communities, or state regulators.

What Has Been Completed:

Origin: Per the Affordable Care Act, non-profit hospitals are required to conduct a community health needs assessment every three years and adopt an implementation strategy to meet the community health needs. Hospitals must report community benefit spending to the IRS every year on Form 990, Schedule H. Colorado has gone above and beyond federal requirements by requiring additional yearly reporting to HCPF.

Background: HB 19-1320 requires non-profit tax-exempt general hospitals, Denver Health Medical Center, and University of Colorado Hospital to complete a community needs assessment every three years and an annual community benefit implementation plan every year. These hospitals are required to report to HCPF on certain community benefits, costs, and shortfalls.

HB 23-1243 makes changes to the reporting hospitals submit to HCPF regarding community engagement activities and the annual data reporting to HCPF regarding community benefit.

Outstanding Items:

In alignment with House Bill (HB) 23-1243, HCPF is working with the Colorado Health Institute to gather feedback on best practices for nonprofit hospitals to ensure diverse input from local community members in determining community priorities. Feedback will also describe best practices for collaboration and the reduction of redundant community needs assessments.

HCPF is seeking feedback from nonprofit hospitals and health systems, community-based organizations and advocacy groups, local public health agencies, community health care providers, and others interested in hospital community benefit. Feedback can be submitted by emailing [email protected].

Resources:

• CHA Issue Brief on HB 23-1243
• IRS Community Benefit Requirements
• HCPF Community Benefit Website
• CHA Regulatory Update- Community Benefit Zoom Recording (passcode: *%Z0DF*6)

Meetings/Dates of Note:

• July 1, 2024: Effective date of new rules
• Oct. 1, 2024: 2024 reporting date

CHA Staff Contact: Megan Axelrod, CHA director of regulatory policy and federal affairs, [email protected]