MT SB560

Nonprofit hospitals must report charity care and community benefit spending to the Department of Public Health and Human Services annually, including expenses from IRS Form 990 Schedule H for financial assistance, community health improvement, and bad debt categories.

Nonprofit hospitals must provide annual community benefits exceeding their potential property tax liability; if community benefit spending falls short, the department assesses a fee equal to the difference.

Creates a Critical Access Health Care Special Revenue Account funded by fees collected from noncompliant nonprofit hospitals, with funds distributed on a per-bed basis to critical access hospitals by June 30 each year.

The Department of Revenue must calculate potential property tax liability for nonprofit hospitals by treating their property as class four commercial property and provide statements to the Department of Public Health and Human Services.

Effective January 1, 2027, with reporting requirements applying to critical access hospitals starting January 1, 2027, and fee assessment provisions applying to critical access hospitals beginning January 1, 2031.