Medical

501(r) Financial Assistance

Section 501(r) of the Internal Revenue Code sets requirements that tax-exempt hospitals must meet, including maintaining a written financial assistance policy and screening patients for eligibility before pursuing extraordinary collection actions. Compliant screening is a condition of a hospital's tax-exempt status.

What 501(r) Financial Assistance means for creditors

For nonprofit hospitals, 501(r) screening isn't optional — it's a tax-status requirement. MSB builds financial-assistance screening directly into its healthcare workflow so patients who qualify are helped and the hospital stays compliant.

Legal reference: 26 U.S.C. § 501(r)

Midwest Service Bureau has recovered medical debt for creditors nationwide since 1970 — on a no-recovery, no-fee basis. Questions about 501(r) financial assistance or a portfolio you'd like reviewed? Call (800) 362-0272.

Related terms

• Bad Debt
• Self-Pay (Patient Balance)

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