Charity Care Credits for Hospitals

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In recent news, studies suggest that nonprofit hospitals should implement a system of credits and trade to be more efficient in their objective. According to The Atlantic, this system allows nonprofit hospitals to reallocate credits between each other. So nonprofit hospitals in “richer” areas, that don’t have as much as a need for charity care, can trade charity care credits to nonprofit hospitals that are in “poorer” areas. This will surely have an effect on the audit approach for those who are the auditors of these nonprofit hospitals that have implemented this system.

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