IRS 501(r)
Internal Revenue Code section establishing additional requirements for 501(c)(3) nonprofit hospital tax exemption.
1 min read · Last reviewed May 23, 2026
At a glance
- Category
- Compliance Program
- Primary sources
- 1
- Workspace handoff
- compliance binder →
Where this comes up
Compliance committees and practice managers operate at this level — written policy, workforce training, sanction policy, monitoring and auditing cadence, response and corrective action. The seven elements of an effective compliance program (OIG) are the scaffolding; this term lives somewhere on that scaffold.
Full definition
What it is in practice
IRS 501(r) requires: Community Health Needs Assessment every 3 years, Financial Assistance Policy, Emergency Medical Care Policy, billing/collection limits, Amounts Generally Billed limit.
How it shows up in your practice
Track the CHNA cycle. Failures can result in loss of 501(c)(3) status and excise taxes.
Sources
- IRS — 501(r) Requirements for Nonprofit Hospitalshttps://www.irs.gov/charities-non-profits/charitable-hospitals-general-requirements-for-tax-exemption-under-section-501r
Track 501(r) requirements in the Compliance Binder
Open compliance binder →Related terms
- Compliance ProgramCharity Care PolicyWritten policy describing how a hospital or health system provides free or discounted care to patients meeting financial eligibility criteria; required for 501(c)(3) nonprofit hospitals under IRC 501(r).
- Compliance ProgramCivil Monetary PenaltiesAdministrative penalties HHS-OIG may impose on healthcare providers for various violations including HIPAA breaches, kickbacks, and billing for excluded individuals.
D3rx is a healthcare-billing and compliance research aid maintained by D3rx Inc. Articles are drafted by an LLM (Anthropic Claude) against primary HHS, OCR, CMS, eCFR, NIST, and state-regulator publications, and reviewed for restraint and source fidelity by the D3rx team.
Reviewer status: a named credentialed reviewer (CHC, CHPC, or healthcare attorney) is being engaged. Until that engagement is finalized, this page does not claim credentialed review.
Related across the archive
- GlossaryCharity Care PolicyWritten policy describing how a hospital or health system provides free or discounted care to patients meeting financial eligibility criteria; required for 501(c)(3) nonprofit hospitals under IRC 501(r).
- GlossaryCivil Monetary PenaltiesAdministrative penalties HHS-OIG may impose on healthcare providers for various violations including HIPAA breaches, kickbacks, and billing for excluded individuals.
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- ComplianceAnnual HIPAA Training Curriculum (What to Cover + How to Document)A 2026 annual HIPAA training curriculum for small healthcare practices — eight required modules under 45 CFR 164.530(b) and 45 CFR 164.308(a)(5), with documentation templates.
- ComplianceAnti-Kickback Statute: What Medical Practices Actually Need to Know (42 USC § 1320a-7b(b))The federal Anti-Kickback Statute is intent-based, criminal-grade, and the most common fraud-and-abuse theory in OIG enforcement. Here is what AKS actually prohibits, how the safe harbors function, and where practices get caught.
- ComplianceBehavioral Health Compliance: 42 CFR Part 2 + HIPAA TogetherHow SAMHSA's 42 CFR Part 2 framework for substance use disorder records overlays HIPAA after the 2024 final rule alignment, and what behavioral health practices must document.
- ComplianceBusiness Associate Agreement Template (2026) + Counterparty TrackerA 2026 HIPAA Business Associate Agreement template with every 45 CFR 164.504(e) required clause, plus the vendor tracker auditors expect alongside it.
This glossary entry is a research aid for billing and compliance staff. It does not provide legal, medical, or financial advice and does not replace counsel. References cited link to primary sources at HHS, OCR, CMS, eCFR, NIST, and the relevant payer or industry body.