HR 9504: Tax Exempt Hospital Transparency Act

HR 9504 in plain English: This bill would require tax-exempt hospitals with revenues above $100,000,000 to disclose additional financial information as part of their annual tax returns. The $100,000,000 threshold would be adjusted for inflation starting after 2028, rounded to the nearest $100,000.

Stated purpose

The bill aims to require tax-exempt hospital organizations to disclose more detailed financial and operational information on their annual tax filings, so the public can better see how these hospitals use their tax-exempt status to benefit their communities.

Key points

• Requires tax-exempt hospitals with revenues over $100,000,000 to report additional financial information annually
• The $100,000,000 revenue threshold is adjusted for inflation for tax years beginning after 2028
• Inflation adjustments are rounded to the nearest $100,000
• New disclosures are filed as part of the hospital's existing annual tax return

Arguments supporters make

• Tax-exempt hospitals receive billions in federal tax breaks each year, and the public deserves clear proof that these hospitals are actually delivering community benefits in return.
• Breaking down spending by facility and category makes it harder for hospital systems to hide poor performance at individual locations behind organization-wide averages.
• More transparency on financial assistance applications — how many are granted or denied — helps patients know their rights and holds hospitals accountable for charity care commitments.

Arguments opponents make

• The added reporting burden, especially for large hospital systems with many facilities, could divert staff time and resources away from patient care toward paperwork and compliance.
• Existing IRS Form 990 requirements already collect significant community benefit and financial data from nonprofit hospitals, making much of this duplication rather than genuine new accountability.
• Defining spending categories like 'nonclinical programming' broadly could cause hospitals to be penalized or publicly criticized for legitimate administrative functions that support safe patient care.

Tradeoffs

Greater public transparency about how tax-exempt hospitals spend money and serve communities comes at the cost of increased administrative and compliance burdens on those hospitals, particularly smaller ones with fewer resources to manage expanded reporting. Policymakers must weigh whether the accountability gains justify those added operational costs.

Current status in Congress: In committee.

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