Montana Community Benefit Guidebook Bootcamp

MHA and PYA Partner to Present Three-Part Community Benefit Bootcamp, Introduce New Guidebook

In the absence of an Internal Revenue Service “bright-line test,” when it comes to community benefit reporting, a lot of what qualifies as such is left to hospital and reporting organization interpretation. The Montana Hospital Association (MHA) has partnered with PYA, P.C., to develop the MHA Community Benefit Guidebook to help provide some clarity for processes and best practices. Additionally, they have teamed up to offer a three-part educational series to introduce the guidebook and provide training on the use of its functionality and tools.

Each nonprofit hospital is granted exemption from federal, state, and local taxes based on the anticipated benefit provided to that hospital’s community. Enhanced community benefit provisions within the Patient Protection and Affordable Care Act resulted in greater visibility for both management and regulators as to the value of those exemptions. The tax revenue forgone by taxing authorities by nonprofits in the communities they serve has garnered additional scrutiny from regulators. It has also increased demand for enhanced reporting of benefits received in comparison to the value of that forgone revenue. 

The Community Benefit Guidebook, developed in 2022, is a collective effort between MHA, a defined task force, and PYA to improve transparency and uniformity regarding Schedule H reporting by Montana hospitals. The guidebook was designed specifically for the hospitals within the state to define, document, and explain categories as reported on Schedule H, Hospitals, submitted to the IRS as part of Form 990, and documented to the public. In addition to serving as a manual to present best reporting practices, the guidebook allows for alignment of a consistent approach between the various hospitals, demonstrating transparency and accountability as a collective group.

Join us for a community benefit bootcamp series in which we introduce MHA members to the Community Benefit Guidebook. The series will cover key components of reporting community benefit in alignment with Schedule H and is open to those within your organization who are responsible for identifying, gathering, quantifying, and reporting community benefit. Internal departments that may be impacted by this reporting include development, marketing, financial, and accounting—at all levels.

Part I:  The Montana Community Benefit Guidebook
Presented January 25, 2023

  • The Why—Why Is Schedule H Important?
  • What Is Community Benefit?
  • How to Get Started
  • Purpose of Schedule H Reporting and Tracking Community Benefit
  • FAP Definitions, Specifics, and Requirements
    • % of FPG for patient care to qualify for free care/discounted medical care
    • Detail asset test and criteria used
    • Medically Indigent Care
  • Definitions and calculations
    • Financial Assistance at Cost
    • Medicaid
    • Costs of other means-tested government programs

RESOURCES: Slides

Part II:  The Montana Community Benefit Guidebook
Presented February 15, 2023

  • Definitions and calculations related to reporting Other Benefits
    • Community health improvement services and community benefit operations
    • Health professions education
    • Subsidized health services
    • Research
    • Cash and in-kind contributions

RESOURCES: Slides

Part III:  The Montana Community Benefit Guidebook
Presented March 1, 2023

  • Community Building Activities
  • Definitions and Calculations Related to Reporting Community Building Activities
    • Physical improvements and housing
    • Economic development
    • Community support
    • Environmental improvements
    • Leadership development and training for community members
    • Coalition building
    • Community health improvement advocacy
    • Workforce development
  • Bad Debt, Medicare, and Collection Practices
  • Annual Considerations for Completion of Schedule H

RESOURCES: Slides

Presenters:

  
Debbie Ernsberger Mark Brumbelow

Debbie Ernsberger

Principal

Mark Brumbelow

Managing Principal of Tax

CPE: Participants in the live webinars were able to earn one credit in Specialized Knowledge for each session attended. Program Level: Intermediate. Delivery Method: Group Internet Based. Advanced Preparation: None. Prerequisites: None. No fee. PYA, P.C. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.