Form 990 Schedule H Instructions - Hospitals
IRS Form 990 Schedule H Instructions
- Updated August 21, 2024 - 2.00 PM - Admin, Tax990
Hospitals that obtained tax-exempt status from the IRS under section 501(c)(3) are required to include Schedule H with their Form 990 to report additional information.
In this article, you can find the purpose, filing requirements, and instructions to complete Schedule H.
Table of Contents
What is the Purpose of Form 990 Schedule H?
Schedule H is used by hospital facilities to report details regarding their activities, policies, and community benefit they offered during the corresponding tax year.
Who Must File Form 990 Schedule H?
Any hospital organization that operated at least one hospital facility during the tax year should attach Schedule H with Form 990. The types of hospital facilities include
Hospital facilities operated directly by the organization
Hospital facilities operated by disregarded entities, and the organization is the sole member
Other healthcare facilities and programs of the hospital organization or the above-mentioned entities
Hospital and other healthcare facilities operated by any joint venture that is treated as a partnership to the extent of the hospital organization's proportionate share of the joint venture.
Note:
These organizations should enter “Yes” on Part IV, line 20a of 990 return.
How to Complete Form 990 Schedule H?
Schedule H comprises 6 parts in total.
Part I - Financial Assistance and Certain Other Community Benefits at Cost
In this part, you are required to report your hospital’s financial assistance policies, the availability of community benefit reports, and the cost of financial assistance and other community
benefit activities.
Also, you must provide the following details regarding financial assistance and means-tested government programs and other community benefits.
- Number of activities or programs
- Persons served
- Total community benefit expense
- Direct offsetting revenue
- Net community benefit expense
- Percentage of total expense
Worksheets for Part I (Line 7)
You must use worksheets provided by the IRS in the Schedule H instructions or any other equivalent documentation to complete the table provided in Part I, line 7.
These documents are not required to be attached to Form 990. However, these documents must be retained by the organization for record-keeping purposes.
Part II - Community Building Activities
This part needs to be completed only if the organization has conducted any community-building activities during the corresponding tax year.
In this part, you are required to elaborate on various community-building activities conducted by your organization, such as physical improvements and housing, economic development, community support, etc.
Note:
The tabular column provided will have the same fields as the previous part.
Part III - Bad Debt, Medicare, and Collection Practices
This part is split up into 3 sections
Bad Debt Expense
Medicare
Collection Practices
Bad Debt Expense
Report details regarding the estimated amount of your organization’s bad debt expenses and provide an explanation wherever required.
Medicare
Report the amount of revenue generated from Medicare and medicare allowable costs of care relating
to payments.
Collection Practices
Mention if your hospital has a written debt collection policy.
Part IV - Management Companies and Joint Ventures (Owned 10% or More by Officers, Directors, Trustees, Key Employees, and Physicians)
Here, you are required to provide details about any management company, joint ventures (including entities outside the U.S), or other separate entity with whom your organization is partnered with or acts as a shareholder.
Report the following details
Name of entity
Description of the primary activity of entity
Organization’s profit % or stock ownership %
Officers, directors, trustees, or key employees’ profit % or stock ownership %
Physicians’ profit % or stock ownership %
Part V - Facility Information
This part is split up into 4 sections.
A.
Hospital Facilities
B.
Facility Policies and Practices
C.
Supplemental Information
D.
Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a
Hospital Facility
Section A - Hospital Facilities
Provide the following details regarding the hospital facilities operated by your organization
Name
Address
Primary website address, and
State license number
Section B - Hospital Facilities
This section requires you to answer a series of “Yes” or “No” questions regarding the Community health needs assessment, Financial assistance policy, billing and collections, and policy relating to emergency medical care.
Note:
You must complete this section for each of the hospital facilities you have listed in the previous section.
Section C - Supplemental Information
You can use this section to provide an explanation for some of the answers you have provided in the previous parts.
Section D - Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility
Provide the name, address, and the type of healthcare facilities that are not registered or licensed as a hospital facility.
Part VI - Supplemental Information
In this part, you are required to provide an additional description for certain questions from the previous parts. You can also add more details for questions other than the required ones.
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