1. Short title This Act may be cited as the Holding Nonprofit Hospitals Accountable Act . 2. Additional requirements for certain hospitals (a) In general Section 501(r) of the Internal Revenue Code of 1986 is amended— (1) in paragraph (1), by striking and in subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , and , and by adding at the end the following new subparagraph: (E) meets the community benefit standard described in paragraph (7). , (2) by redesignating paragraph (7) as paragraph (8), and (3) by inserting after paragraph (6) the following new paragraph: (7) Community benefit standard (A) In general A hospital organization meets the requirements of this paragraph if such organization— (i) has a board of directors drawn from the community in which such organization is located, (ii) both— (I) treats patients who pay their bills through public programs, including under the Medicare program under title XVIII of the Social Security Act or under the Medicaid program under title XIX of such Act, and (II) does not limit the number of such patients served at any clinical site owned or controlled by such organization, and (iii) spends an amount which meets or exceeds the expenditure threshold for the taxable year on any combination of— (I) training, education, or research designed to improve patient care, (II) improvements to facilities and equipment except as provided in subparagraph (C), and (III) free or discounted care pursuant to a financial assistance policy. (B) Expenditure threshold For purposes of this paragraph, the term expenditure threshold means 100 percent of the value of the Federal, State, and local tax exemptions of the hospital organization for the taxable year. (C) Special rules for improvements to facilities and equipment (i) In general For purposes of clause (iii)(II) of subparagraph (A)— (I) expenditures under such clause may not be used to account for more than 50 percent of the minimum spending requirement under such subparagraph, and (II) expenditures for