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Define and Understand Your Service Area

Step 1: Define Service Area

Geography

What zip codes, counties and cities are part of your service area?
- and/or -

Specialized Target Population

Does your hospital focus on serving a specific population (e.g., children, women, or the elderly)?

Important Note for Hospitals: A hospital facility may not define its community to exclude medically underserved, low-income, or minority populations who live in the geographic areas from which the hospital facility draws its patients (unless such populations are not part of the hospital facility's target patient population(s) or affected by its principal functions) or otherwise should be included based on the method the hospital facility uses to define its community. In addition, in determining its patient populations for purposes of defining its community, a hospital facility must take into account all patients without regard to whether (or how much) they or their insurers pay for the care received or whether they are eligible for assistance under the hospital facility's financial assistance policy. IRS Community Health Needs Assessment Rule 12/31/14.

Step 2: Research the Service Area's Demographics

Consider describing the following:

  • Population
    • Under 5
    • Under 18
    • Over 65
    • African-American/Hispanic/Asian/Pacific Islander/White
  • Language other than English spoken at home
  • High school graduates and bachelor's degree or higher
  • Median household income
  • Persons below the poverty level

Explore Demographics Dashboard

Step 3: Identify Zip Codes with High Socioeconomic Need

Use the SocioNeeds Index® Suite to explore which locations (e.g., counties, zip codes, census tracts) in your service area have the highest relative socioeconomic need for a range of topics.

Explore the SocioNeeds Index® Suite

Tips for the Final Report

  • Provide a short justification for your selected service area (e.g., "We selected Main County as our hospital's service area because over 70% of our patient population resides in this county.)
  • Include charts and visuals

From the IRS

In defining the community it serves for purposes of paragraph (b)(1)(i) of this section, a hospital facility may take into account all of the relevant facts and circumstances, including the geographic area served by the hospital facility, target population(s) served (for example, children, women, or the aged), and principal functions (for example, focus on a particular specialty area or targeted disease). However, a hospital facility may not define its community to exclude medically underserved, low-income, or minority populations who live in the geographic areas from which the hospital facility draws its patients (unless such populations are not part of the hospital facility's target patient population(s) or affected by its principal functions) or otherwise should be included based on the method the hospital facility uses to define its community. In addition, in determining its patient populations for purposes of defining its community, a hospital facility must take into account all patients without regard to whether (or how much) they or their insurers pay for the care received or whether they are eligible for assistance under the hospital facility's financial assistance policy. In the case of a hospital facility consisting of multiple buildings that operate under a single state license and serve different geographic areas or populations, the community served by the hospital facility is the aggregate of such areas or populations.

IRS Community Health Needs Assessment Rule 12/31/14

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