Billing & coverage
Hospital financial assistance (charity care) and price transparency
Nonprofit hospitals must have written financial assistance policies; hospitals must also publish prices.
Key points
- Tax-exempt hospitals must maintain a written financial assistance policy (FAP), widely publicize it, and limit charges to FAP-eligible patients.
- Before extraordinary collection actions (such as credit reporting or lawsuits), the hospital must make reasonable efforts to determine FAP eligibility, including notification periods.
- Eligibility criteria vary by hospital; many states add their own charity-care rules.
- Federal price transparency rules require hospitals to post standard charges and a consumer-friendly list of shoppable services.
In practice
- Ask for the FAP, the plain-language summary and the application — even after a bill is in collections.
- Request an itemized bill before negotiating.
Official sources
- IRS — Financial assistance policy requirements (501(r)(4)) (opens in a new tab)
- CMS — Hospital price transparency (opens in a new tab)
Educational summary, not legal advice. Deadlines depend on the notice, plan type and state.
Sources checked November 7, 2026. Rules change — confirm with the official source before acting.