The local newspaper of a large urban area printed a story titled Charity Care by Hospitals Stirs

The local newspaper of a large urban area printed a story titled €œCharity Care by Hospitals Stirs Debate.€ The story quotes one legislator who wants €œto ensure that the state€™s not-for-profit hospitals are fulfilling their obligation; that is, to provide charity care at least equal to the tax exemption they receive as a not-for-profit entity.€ The following table is provided:

Required
a. What are the obligations of IRC Section 501(c)(3) organizations to provide charity care?
b. Do you agree that the hospitals are not fulfilling their obligations? Why or why not?
c. What additional information would you like to have? Do you expect to find this information in the audited annual financial statements?

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Comparison of Selected Factors in Three Not-for-Profit Hospitals (dollars in millions) Capitol Hospital Hospital Hospital $4.5 Ноpe St. Pat's Estimated taxes the hospitals would pay if they were not tax-exempt Contract adjustments with third-party payors (including Medicaid and Medicare) Charity care Nonreimbursed research and graduate medical education $ 6.8 $2.2 $10.8 $ 3.7 $ 2.0 $3.5 $1.3 $3.1 $2.0 $0.7 n.a.