Community Benefit

Physician Time in Health Profession Education

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: One of our physicians sits on the admissions committee of the local college of medicine. Can we report the expense of the physician's time as community benefit?

REVISED RESPONSE

Recommendation: This expense may be reported as community benefit as long as that the physician's time is a cost borne by the hospital itself rather than by a practice plan or some other entity:

  • Report in the category of health professions education if the activity meets the IRS definition of health professions education (for example, the physician serves as faculty). Review the instructions for the IRS Form 990, Schedule H for the types of costs that can be reported as health professions education.
  • Report in the category of in-kind donation, if the activity does not meet the definition of health professions education.

However, consider keeping small costs off of the Schedule H.

(June 2012)