TY - CONF
T1 - Optimal Threshold of Charity Care and Bad Debts for Maintaining Tax-Exempt Status in Nonprofit Hospitals
AU - Lamboy-Ruiz, Melvin A.
AU - Lien, Don
AU - Smith, Pamela C.
N1 - Accounting educators, students and professionals are invited to submit their work to the 2016 Western Region Meeting, to be held in Seattle, WA, May 5 - 7, 2016. The deadline for all submissions is 11:59 pm EDT on January 13, 2016.
PY - 2016/5/7
Y1 - 2016/5/7
N2 - Presented at the AAA Western Region Meeting Federal and state legislative agencies continue to debate whether specific charity care levels should be mandated for nonprofit hospitals to maintain their tax-exempt status. We attempt to model what should be an optimal bundle of charity care for hospitals. To our knowledge, this is one of the first study’s to model a potential optimal level of charity care thresholds. This study is relevant and timely because the tax law does not succinctly define charity care, yet mandates hospitals provide it in order to keep tax-exempt status. Our model illustrates that an optimal charity care threshold policy does exist in certain situations. These findings may be used in future research to empirically examine specific hospital and manager behavior.
AB - Presented at the AAA Western Region Meeting Federal and state legislative agencies continue to debate whether specific charity care levels should be mandated for nonprofit hospitals to maintain their tax-exempt status. We attempt to model what should be an optimal bundle of charity care for hospitals. To our knowledge, this is one of the first study’s to model a potential optimal level of charity care thresholds. This study is relevant and timely because the tax law does not succinctly define charity care, yet mandates hospitals provide it in order to keep tax-exempt status. Our model illustrates that an optimal charity care threshold policy does exist in certain situations. These findings may be used in future research to empirically examine specific hospital and manager behavior.
UR - https://convention2.allacademic.com/one/aaa/we16/index.php?cmd=Online+Program+View+Paper&selected_paper_id=1130253&PHPSESSID=4587nf7rihuqin2724ssl2p3r1
M3 - Presentation
T2 - AAA Western Regional Conference Meeting
Y2 - 7 May 2016
ER -