In communities across the nation, many nonprofit hospitals are finding that state and local authorities are challenging their status as tax-exempt organizations. Questions are being raised as to whether these hospitals are providing sufficient services to the needy. Questions are also being asked as to whether these hospitals are engaging in activities that for-profit businesses normally perform.
 
As state and local authorities review hospital activities, Congress is holding hearings on how the IRS treats nonprofit hospitals. The IRS is in the process of reviewing the status of these hospitals for purposes of analyzing the application of federal ...