How does the Senate Finance Committees report on the status of tax-exempt hospitals affect my agency?
The minority staff of the Senate Finance Committee’s report, “Tax-Exempt Hospitals: Discussion Draft,” was written to examine whether or not hospitals are “earning” their tax-exempt status. The report, released July 18, 2007, affects collection agencies because it examined charity care, recommending that the FDCPA apply to all internal billing and collection practices and implying that post-judicial debt collection actions are inherently “aggressive.” ACA submitted comments to the report in August 2007. ACA argued that unpaid debt should be included as charity care because it represents “unidentified charity care or care that was provided without due compensation for services rendered and received.” ACA’s comments also addressed the applicability of the FDCPA, stating the Senate Finance Committee’s suggestion was problematic and contrary to the spirit of the federal statute. The law was created for third-party collectors who have had no previous business relationship with the consumer
