Justice Catalyst Law and the National Consumer Law Center submitted a letter complaint to the Internal Revenue Service, stating that non-profit hospitals were violating their obligations under the Internal Revenue Code by outsourcing their emergency rooms to for-profit entities who did not offer free and reduced care (sometimes called “charity care”) to qualified individuals.

Our letter identified three large hospitals in the United States who appeared to be violating their charity care obligations, which the IRS is required to act on and report to Congress. This practice is part of a larger trend in health care of hospitals outsourcing their care to entities that do not contract with insurers, and which result in patients receiving exorbitant surprise bills in addition to their hospital bill.

After we submitted our letter, Senator Elizabeth Warren and Representatives Katie Porter and Lloyd Doggett submitted a letter in support of our petition, urging the IRS to take action on this issue.