As a healthcare nonprofit, you have the opportunity to impact thousands of lives. However, being a healthcare nonprofit comes with it’s fair share of regulatory and organizational issues that can affect your long term future. In this article, we’ll take a look at the common compliance requirements of healthcare non-profits.
Healthcare nonprofits play a crucial role in addressing health-related issues, providing medical services, advancing medical research, and supporting patient advocacy. These organizations vary in their focus and objectives. Here are some common types of healthcare nonprofits:
As varied as healthcare issues can be, there are many different types of healthcare nonprofits too. Let’s take a look at some of the most common ones below.
These are federally funded 501(c)(3) organizations that provide healthcare services to low income groups. They are generally located in areas where people do not have access to medical support. They serve people from diverse backgrounds and communities. Apart from basic healthcare, they often provide programs related to nutrition, exercise, and wellness. They form a critical component of the public healthcare system, ensuring people in both urban and rural areas benefit from healthcare innovations. Even though they’re nonprofits, they work with cutting edge technology, equipment, and systems to ensure the best care for patients.
Rehabilitation centers for drug addicts are another type of healthcare nonprofit. The cost of enrolling in a private de-addiction facility can be out of bounds for people from low income households. Unfortunately, such people are more likely to develop habits of drug abuse and dependency. Thus, they are more in need of such services. Nonprofit centers such as these help people cope with depression and anxiety, and ultimately, eliminate their dependence on drugs.
While physical health is important, mental wellbeing is also a crucial aspect of healthcare. Non profit mental health organizations help people recognize signs of mental distress and address them in a timely manner. Generally, mental health is considered a taboo topic and people refrain from talking too much about it. An important role of these nonprofits is also to raise awareness about mental health issues, and encourage people to come forward and seek help. Mental healthcare centers consist of professionals who help people cope with distress, both emotionally and psychologically.
These nonprofit organizations provide a wide range of medical services, including inpatient care, outpatient care, emergency services, and specialized treatments. They often serve as community healthcare hubs.
Nonprofit research institutions, such as academic medical centers and independent research centers, focus on medical research, clinical trials, and the advancement of medical knowledge. Examples include the Mayo Clinic and the Cleveland Clinic.
These nonprofits provide support, education, and advocacy for individuals and families affected by specific medical conditions. Examples include the American Cancer Society, Alzheimer’s Association, and American Diabetes Association.
These nonprofits focus on end-of-life care, providing comfort and support to individuals with life-limiting illnesses and their families.
Organizations in this category work to promote health education, preventive care, and wellness initiatives. They often run public health campaigns and educational programs.
Some nonprofits collect and distribute medical supplies and equipment to underserved regions or countries with limited access to healthcare resources.
Nonprofit organizations dedicated to global health and humanitarian efforts, providing medical care, vaccinations, and disaster relief in underserved and crisis-affected areas. Examples include Médecins Sans Frontières (Doctors Without Borders) and Partners In Health.
Foundations may support healthcare initiatives through funding, grants, and scholarships. They often partner with hospitals, research institutions, and community health programs.
Nonprofit blood banks collect, store, and distribute blood and blood products for medical treatments and emergencies.
Organizations in this category focus on providing healthcare and support services to orphaned or vulnerable children. Children’s hospitals also often operate as nonprofit entities.
Nonprofits that offer healthcare and support services to elderly individuals, including home care, senior centers, and assisted living facilities.
These nonprofits are dedicated to a particular medical condition or disease, conducting research, raising awareness, and providing support to patients and their families. Examples include the American Heart Association and the National Multiple Sclerosis Society.
Nonprofit healthcare organizations enjoy various benefits from the government, including a waiver of taxes. Hence, they are closely scrutinized by government bodies and must comply with certain rules and laws to maintain their nonprofit status. Organizations that fail to meet federal compliance guidelines face penalties and fines, and can also be barred from raising funds.
Some common compliance requirements for nonprofit healthcare organizations include:
The board of a healthcare non profit organization serves as the guiding light for its actions, helps ensure that it is legally compliant at all times, and manages and supervises it’s activities. Each board member should have a specific role.
First and foremost, it is important for a board to ensure a healthcare nonprofit meets rules and regulations in the healthcare industry on an ongoing basis. Board members are also responsible for providing strategic leadership, financial stability, and executive support to a nonprofit organization.
The board must develop and communicate the organization’s vision, mission, and goals. It must continually monitor the organization’s progress and outcomes. Typically, a robust system for evaluating performance should include the budget, balance sheet, income statement, annual report, and financial reports. These are all critical documents when filing the 990 form.
In terms of legal compliance, the board must ensure all 990 filings are made on a regular basis. Finally, the board is also responsible for heading fundraising activities for a healthcare nonprofit. Successful healthcare nonprofits are generally managed by enthusiastic board members, who regularly attend meetings, actively participate in every aspect of the nonprofit’s functioning, and represent the organization in a positive manner.
HIPAA stands for Health Insurance Portability and Accountability Act, implemented in 1996 to safeguard the privacy of healthcare information. The goal of HIPAA is to ensure that healthcare information of the public is not shared with any unauthorized parties, without an individual’s consent.
To maintain the security of patients’ health information under HIPAA, healthcare nonprofits are expected to do the following:
The HIPAA is enforced by the U.S Department of Health and Human Services. If an employee or consumer makes a complaint, it is investigated and corrective action is taken against non compliant organizations.
Often, HIPAA violations occur when healthcare information is stolen, sensitive data is copied, or information is disclosed verbally.
Violation of HIPAA can incur severe penalties for healthcare organizations. These include:
HIPAA violations have cost many hospitals and organizations hefty fines. St. Elizabeth’s Medical Center was charged a fine of $218,400 after they put the public health information of nearly 500 patients at risk. In another case, the Anchorage Community Medical Health Services had to pay a fine of $150,000 after a malware revealed the records of more than 2,700 patients. The center used outdated systems and software, and did not upgrade their technology. This case underlines the importance of processes and procedures, as well as regularly checking your software for malware.
It can be hard to detect security and compliance issues in growing and complex healthcare nonprofits. Moreover, compliance with HIPAA and other regulations often entails huge amounts of paperwork that healthcare organizations can find cumbersome.
A simple solution to their compliance needs is using an automated compliance software that extends across through their entire organization. This will help them maintain consistency and minimize human error.
An automated system for healthcare compliance such as VComply offers the following benefits to nonprofits:
We hope this article sets you up to successfully fulfill your legal compliance needs. Violations of laws such as HIPAA are often the result of technical oversight and not keeping pace with changing technology. With the right tools and software, they are completely avoidable, so you can focus on what matters most: providing world-class patient care.
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