H.R. 9504: Tax Exempt Hospital Transparency Act

The Tax Exempt Hospital Transparency Act (H.R. 9504) is a proposed law that would require nonprofit hospitals to provide more detailed information about their financial activities and community contributions. Specifically, all tax-exempt hospitals would need to report the total value of financial assistance they provide, the number of financial assistance applications they receive, approve, and deny, and how they are addressing community health needs. Larger hospitals (those with over 100 staffed beds) would have additional reporting requirements, such as identifying their top three community health priorities and detailing their spending on quality improvement and nonclinical programs. High-revenue hospitals (those with over $100 million in net patient revenue) would need to provide even more detailed financial information, including advertising costs and participation in the federal 340B drug discount program. The bill also mandates the Department of Health and Human Services to create a standardized list of health service categories for consistent reporting. Additionally, the Government Accountability Office would study the 25 largest tax-exempt hospital organizations to estimate the federal income tax they would owe if they were not tax-exempt.

Supporters of the Tax Exempt Hospital Transparency Act argue that it would enhance accountability and ensure that nonprofit hospitals are fulfilling their obligations to provide community benefits in exchange for their tax-exempt status. By requiring detailed reporting on financial assistance and community health initiatives, the bill aims to provide a clearer picture of how these hospitals contribute to public health. Proponents believe that increased transparency will help policymakers and the public assess whether these institutions are providing sufficient community benefits to justify their tax exemptions.

Critics, including the American Hospital Association (AHA), express concerns that the bill would impose substantial administrative and financial burdens on hospitals, particularly smaller and mid-sized nonprofit institutions. They argue that the focus on financial assistance, to the exclusion of other critical components of community benefit like Medicaid shortfall, disregards the extensive reporting already conducted by tax-exempt hospitals. The AHA also highlights that while the bill exempts critical access and rural emergency hospitals from the most intensive requirements, other financially vulnerable hospitals would still need to invest in compliance infrastructure to meet the new standards. Additionally, there are concerns that the bill's requirements could divert resources away from patient care and other essential services.

The Tax Exempt Hospital Transparency Act, sponsored by Gregory Murphy, does not show direct industry overlaps with the sponsor's top donor industries, which include Health Professionals and Retired individuals. However, the lobbying activity indicates that there are entities involved in the healthcare sector that have made significant contributions, such as Y, which is also a donor. Y contributed $30,000 through Cornerstone Government Affairs, indicating a potential indirect influence on the bill's subject matter. While the total overlap amount from direct donor contributions is zero, the presence of lobbying activity from health-related organizations suggests that there may be vested interests at play that could influence the bill's outcomes. Voters should be aware of these connections as they may affect the transparency and accountability intended by the legislation.

Organizations that lobbied on issues related to this bill's policy area. 1 lobbying client(s) are also sponsor donors.

Source: Senate Lobbying Disclosure Act (LDA) filings, 2026

Top industries funding Gregory Murphy, ranked by total contributions.

Source: OpenSecrets.org (Center for Responsive Politics)