Health Care Law Blog
- Posts by Michael C. Zahrt
ShareholderMike is a business and estate planning lawyer in the Grand Rapids office of Foster Swift and is the current leader of the firm's Agri-Business sub-practice group. His area of expertise is business succession planning. This involves ...
Healthcare executives are advised to consider the significance of a ruling issued in 2024 by the Internal Revenue Service (IRS) which revoked the tax-exempt status of a non-profit organization. In Private Letter Ruling* 202437007, the IRS determined that a non-profit organization had failed the “operational test” and revoked its tax-exempt status.
The entity in question had indicated no charitable activities or related expenses, leading the IRS to conclude that the organization was not operating exclusively for tax-exempt purposes.
Implications for Healthcare ...
The Provider Relief Fund was established through the Coronavirus Aid, Relief and Economic Security (CARES Act) to support health care providers facing lost revenue and increased expenses relating to COVID-19. Within the Provider Relief Fund, certain amounts are allocated for various types of providers. For example, there are specific allocations to hospitals, rural hospitals, and providers treating uninsured patients for COVID-19. Additionally, $50 billion was allocated for general distribution to providers. Of the $50 billion, the first $30 billion was quickly disbursed to facilities and providers who received Medicare fee-for-service reimbursements in 2019. The remaining $20 billion of the general distribution was distributed beginning on April 24, 2020.
