Community Benefit

Residential Facilities for Patients and Families

Please Take Note: The information provided does not constitute legal or tax advice. The material is provided for informational/educational purposes only. Please consult with counsel regarding your organization's particular circumstances.

Question: Should we report as community benefit the costs of stays at a facility on our campus that provides free, convenient, overnight accommodations to families with limited income and who live outside the immediate area?

Recommendation:

  1. Free overnight stays for persons meeting the organization’s financial assistance policy and their families should be reported as community benefit. Depending on the organization’s accounting system, it could be reported either as part of charity care or as a health care support service in category A3.
  2. Stays for patients who do not meet the organization’s financial assistance policy and their their families should be considered part of operational expenses and should not be reported as community benefit.

(Updated July 2013)