File #: 13-206    Version: 1 Name: Support of AB 975
Type: Resolution - Council Status: Passed
In control: City Council
Meeting Date: 5/6/2013 Final action: 5/6/2013
Enactment date: 5/6/2013 Enactment #: Reso 2013-053
Title: RESOLUTION SUPPORTING ASSEMBLY BILL 975 (WIECKOWSKI/BONTA)
Sponsors: City Council
Attachments: 1. Supplement 8H Consent 2013 0506.pdf
Title
RESOLUTION SUPPORTING ASSEMBLY BILL 975 (WIECKOWSKI/BONTA)


Body
WHEREAS, Assembly Member Bob Wieckowski and Assembly Member Rob Bonta have introduced AB 975, a bill relating to nonprofit hospitals and the delivery of charity care and community benefits, into the California State Assembly; and

WHEREAS, AB 975 only applies to private nonprofit hospitals and multispecialty clinics and exempts public hospitals such as district hospitals, the University of California hospitals, County health systems and facilities operated by the Veterans Administration, and AB 975 does not apply to private for-profit hospitals and specifically exempts small rural hospitals and children's hospitals; and

WHEREAS, AB 975 will help ensure that nonprofit hospitals are providing an appropriate level of charity care community benefits in exchange for their tax benefited status; and

WHEREAS, this important legislation defines charity care and community benefits, standardizes the methodology by which community benefits are calculated and ensures greater public transparency on how hospitals meet their charity care obligations; and

WHEREAS, the State Legislature and the Board of Equalization (BOE) have been examining nonprofit hospitals for several years; and

WHEREAS, in 2007 and 2012 audits by the State Auditor found uncompensated care provided by nonprofit and for-profit hospitals were not significantly different regardless of tax status; and

WHEREAS, the State Auditor recommended the Legislature amend state law to either define a methodology in state law for calculating the community benefits each hospital delivers or direct OSHPD to develop regulations to assess a penalty to ensure community benefit plans are submitted; and

WHEREAS, AB 975 will address the State Auditor's recommendations and provide more clarity and accountability for nonprofit hospitals and their charity care and community benefits; and

WHEREAS, AB 975 will clarify provisions...

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