Solutions   |   Patient Charity Care

About 501(r)

All federally tax-exempt hospitals must comply with and adhere to the requirements stipulated under IRS 501(r), which went into effect in 2016. Noncompliance places the hospital’s tax-exempt status in jeopardy of being revoked by the IRS.

The IRS is taking 501(r) compliance very seriously. In February 2017, the IRS announced it revoked a hospital’s tax-exempt status for “failure to comply with section 501(r)”. According to the most recent IRS report of 2,482 compliance reviews of charitable hospitals completed between 2014 and 2016, approximately 40% of hospitals reviewed by the IRS for 501(r) compliance have received follow up requests for information.

Caritas360 – Simplifying the Patient Medical Financial Application Process

Caritas360 is a unique, cloud-based Charity Care Administration software application designed as a single platform with many benefits. Caritas360 provides patients with a web-based platform for submission of MFA applications while assisting hospitals to mitigate risk associated with IRS 501(r) and applicable State Community Benefit requirements noncompliance.

The electronic Medical Financial Assistance (eMFA) application enables real-time submission of an MFA application via a secured hyperlink embedded in the Provider’s patient health portal. Features include:

  • Two-factor authentication access;
  • 100% OS and browser agnostic, PC and mobile devices compatibility;
  • Upload documents in support of application;
  • Intuitive form-completion flow with easy to understand instructions;
  • ‘Save and Return’ capabilities for patient to save work and complete form at a later date;

The virtual Charity Care Administration (vCCA) office designed to systematically accept eMFA application submissions as well as enable efficient manual entry of MFA applications taken over the phone or received in the mail. Features include:

  • Role-based access and restricted usage;
  • Session time-outs;
  • Seamless integration between eMFA and vCCA;
  • Verification-based integrated workflow;
  • Two-factor authentication access to vCCA for maximum ePHI security and confidentiality protection;
  • Flexible and robust reporting, including batch files to provide documentation support to assist with 990 Schedule H tax filing;
  • Dynamic dashboards with real-time “in queue” statistics and adjudication metrics;


For more information on the many benefits access Caritas360.