<![CDATA[MBAF - Healthcare Advisories]]> <![CDATA[Healthcare Services Advisory - New Law Delays Cut in Medicare Reimbursements Until February 29]]>
Ronald Finkelstein

Ronald D. Finkelstein
CPA/ABV, Principal rfinkelstein@mbafcpa.com (954) 760-9000

Michael Ehrenpreis

Michael Ehrenpreis
CPA/CFF, Principal mehrenpreis@mbaf-ere.com (212) 931-9191

A scheduled 27.4 percent cut in the reimbursements that physicians receive for providing services to Medicare patients has been postponed from January 1, 2012 to February 29, 2012.

That two-month postponement is among provisions of the Temporary Payroll Tax Cut Continuation Act of 2011 (H.R. 3765), which Congress passed on December 22 and President Obama signed into law the following day. The section on Medicare reimbursement is Title III of the law.

The Centers for Medicare & Medicaid Services (CMS) announced the 27.4 percent cut in the Medicare reimbursement rate on November 1, 2011.

The CMS utilizes the Sustainable Growth Rate (SGR) formula to calculate how much Medicare will pay for the services physicians provide. The formula, which was part of the Balanced Budget Act of 1997, utilizes a target path that is dependent on the growth rate of physician costs, Medicare enrollment and per person real gross domestic product. When payments to physicians increase in a given year, the formula adjusts and reduces the payments in the following year in order to maintain the targeted spending path.

The new law also extends cuts in the payroll tax for two months, until February 29, 2012, and extends several periods of eligibility for unemployment insurance.

It is anticipated that in early 2012 Congress will determine whether to continue those extensions and whether to implement any changes in reimbursement for Medicare services.

But for the first two months of 2012, the Physician Fee Schedule will be at the same Medicare reimbursement levels as in 2011.

If you would like additional information on the postponement of the cut in CMS’s Medicare reimbursement rate, do not hesitate to contact our Healthcare Specialists or call us at 1-800-239-1474.

]]> <![CDATA[Healthcare Services Advisory - New Rules are Taking Effect on Accounting for Insurance Recoveries]]>
Ronald Finkelstein
Alex Binelo
Michael Ehrenpreis
Donald Levin

The 2011 accrual basis year-end financial statements of medical practices and other health care entities must comply with new requirements on accounting for insurance recoveries under Accounting Standards Update No. 2010-24 Presentation of Insurance Claims and Related Insurance Recoveries.

The Financial Accounting Standards Board (FASB) issued ASU 2010-24 (the Update) in August 2010, with the stated purpose of achieving consistency in the accounting treatment of medical malpractice claims by prohibiting a netting of those claims.

The Update amends previous FASB guidance by clarifying that a health care entity should not net insurance recoveries against a related claim liability. Additionally, the amount of the claim liability should be determined without consideration of insurance recoveries.

The FASB noted that there had been diversity in practice related to the accounting by health care entities for medical malpractice claims and similar liabilities and their related anticipated insurance recoveries. It noted that most health care entities have been netting anticipated insurance recoveries against the related accrued liability, although some entities have been presenting the anticipated insurance recovery and related liability on a gross basis.

ASU 2010-24 became effective for fiscal years, and interim periods within those years, beginning after December 15, 2010 with early application and prospective application permitted. For entities that report on a calendar year basis, the effective date is December 31, 2011 for annual statements.

A cumulative-effect adjustment should be recognized in opening retained earnings in the period of adoption if a difference exists between any liabilities and insurance receivables recorded as a result of applying the amendments in the Update.

If you would like additional information on the accounting requirements for health care entities under ASU 2010-24, do not hesitate to contact our Healthcare specialists or call us at 1-800-239-1474.

]]> <![CDATA[Healthcare Services Advisory - CMS Revises Physician Pay Cut Down to 27.4 Percent]]>
Lydia Glatz
Ronald Finkelstein
Michael Ehrenpreis
Donald Levin

On November 1, 2011 Centers for Medicare & Medicaid Services (CMS) announced that physician payments in 2012 will be cut by 27.4 percent, down from the initially proposed cut of 29.5 percent, while outpatient services and ambulatory surgical centers will see increased payments of 1.9 percent and 1.6 percent, respectively.

CMS utilizes the Sustainable Growth Rate (SGR) formula to calculate how much Medicare will pay for the services physicians provide. The formula, which was part of the Balanced Budget Act of 1997, utilizes a target path that is dependent on the growth rate of physician costs, Medicare enrollment and per person real gross domestic product. When payments to physicians increase in a given year, the formula adjusts and reduces the payments in the following year in order to maintain the targeted spending path.

Additional changes include:

  • Slight payment increases for annual Medicare beneficiary wellness visits;
  • Amended values for 300 "misvalued" physician fee schedule services codes;
  • Changes to how CMS adjusts Medicare payments based on local practice costs;
  • A reduction – in some cases, up to 50 percent – for some imaging payments for repeated scans within the same visit; and
  • An expanded list of telehealth services covered by Medicare.

Without Congressional intervention, the American Medical Association (AMA) predicts that Medicare physician payments will continue to be cut and by the year 2016 could see cuts of about 40 percent, while practice costs will continue to rise by as much as 20 percent.

If left unchanged, the growing American aging population and the entry of the Baby Boomer generation into the Medicare system may find limited access to physician services as physicians may limit the number of Medicare patients they treat.

The Department of Health & Human Services (HHS) has indicated it will be asking Congress to pass a permanent fix to the flawed formula.

The rule is scheduled to be published in the Federal Register on November 28, and CMS will accept comments until January 3, 2012. The agency says it will respond to comments in the CY 2013 rules.

If you would like additional information on the CMS final rule on provider reimbursement, do not hesitate to contact our Healthcare Specialists or call us at 1-800-239-1474.

]]> <![CDATA[Healthcare Services Advisory - Final Rules on ACOs Provide Incentives for Physicians and Hospitals]]>
Lydia Glatz
Ronald Finkelstein
Michael Ehrenpreis

Physicians and hospitals that had been hesitant about Accountable Care Organizations (ACO) may have just received the needed incentive for the formation of an ACO. On October 20, 2011 the Department of Health and Human Services (HHS) issued its final rules in response to approximately 1,320 public comments received to its April 7, 2011, proposed rule.

The Medicare Shared Savings Program, which was part of the Patient Protection and Affordable Care Act, encouraged the development of ACOs, with the aim of providing better care for individuals, better health for the populations and at the same time lowering the growth of Medicare expenditures.

The initial proposed rule provided for a comment period. Many potential participants commented that the proposed requirements limited access to participation, were burdensome and capital intensive and had an end reward that did not merit the risk. The final rules attempt to change and address these issues, which resulted in modifications to 13 of the initial proposed rules and include:

  • Greater flexibility in eligibility participation
  • Multiple start dates in 2012
  • Longer agreement periods for those starting in 2012
  • Greater flexibility in the governance and legal structure
  • Simpler and more streamlined quality performance standards
  • Adjustments to the financial model to increase financial incentives
  • Increased sharing caps
  • No down-side risk and first dollar sharing in Track 1
  • Removal of the 25 percent withhold
  • Greater flexibility in timing for the evaluation of sharing savings
  • Greater flexibility in antitrust review
  • Greater flexibility in timing for repayment of losses
  • Additional options for Federally qualified health centers (FQHCs) and rural health centers (RHCs)

In order to provide upfront financial assistance to small medical groups and rural hospitals, the Centers for Medicare and Medicaid Services (CMS) will make available an advanced payment program beginning April 2012 of up to $170 million to be repaid as providers reduce Medicare costs.

Provider groups can receive payments either as an up-front fixed payment, an up-front payment based on the number of Medicare patients served, or a monthly payment based on the number of Medicare patients, according to a Fact Sheet.

The initial proposed rule measured an ACO's performance on the attainment of 65 quality metrics in five domains. These quality measures have been reduced to 33 quality metrics and four domains.

The final rules include increased financial incentives, potential for larger bonuses, sharing caps, no down-side risk to Track 1 and the removal of the 25 percent withhold of shared savings.

If you would like additional information on the HHS final rules on ACOs, do not hesitate to contact our Healthcare Specialists or call us at 1-800-239-1474.

]]> <![CDATA[Healthcare Services Advisory - Senate Report Raises Concerns on Number of Medicare Visits]]>
Ronald Finkelstein
Michael Ehrenpreis

A recent U.S. Senate report provides home health care companies with some additional reasons to closely monitor their number of therapy visits to Medicare patients and the services they provide in those visits.

In a report it released on October 3, the Senate Committee on Finance said that in an investigation it determined that three large for-profit home health care companies provided what it called "medically-unnecessary patient care" with the goal of increasing their profits. Medicare Part A spends $19 billion a year for home health care, according to the report.

In its review of those companies' internal documents, the Committee determined that they had their managers encourage therapists to meet a 10-visit target that would increase their payments from Medicare.

The Committee cited Amedisys Inc., Gentiva Health Services Inc. and LHC Group for that activity and for other practices that it said were designed to maximize Medicare reimbursements regardless of patients needs. It did not issue any penalties.

A principal recommendation of the report was that the Centers for Medicare and Medicated Services (CMS) "must move toward taking therapy out of the payment model."

Following the release of the report, there is a prospect that the CMS will increase its scrutiny of home health care companies' billings on patients for whom they perform 10 or more therapy visits during a year. In some cases, home health care companies might find it necessary to perform their own added due diligence to determine if visits meet CMS rules for being necessary.

If you would like additional information on the Senate Committee on Finance report or on the overall issue of monitoring the number of visits to Medicare patients, do not hesitate to contact our Healthcare Specialists or call us at 1-800-239-1474.

]]> <![CDATA[Healthcare Services Advisory - FASB Requires Disclosure Changes on Bad Debt and Doubtful Accounts]]>
Ronald Finkelstein
Alex Binelo

The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) with new requirements for healthcare entities on the presentation and disclosure of net revenue provisions for bad debt and allowance for doubtful accounts.

The FASB released Accounting Standards Update 2011-07 Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Health Care Entities on July 25.

Requirements of the ASU are limited to healthcare entities that recognize patient service revenue at the time the services are rendered even though the entity does not assess the patient’s ability to pay.

The ASU requires those entities to change the presentation of their statement of operations by reclassifying the provision for bad debts associated with patient service revenue from an operating expense to a deduction from patient service revenue (net of contractual allowances and discounts).

Additionally, those entities are required to provide enhanced disclosure about their policies for recognizing revenue and assessing bad debts.

The ASU also requires disclosures of patient service revenue (net of contractual allowances and discounts) as well as qualitative and quantitative information about changes in the allowance for doubtful accounts.

For public entities, the new requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2011, with early adoption permitted. For nonpublic entities, the amendments are effective for the first annual period ending after December 15, 2012, and interim and annual periods thereafter, with early adoption permitted.

If you would like additional information about the FASB’s Accounting Standards Update on disclosure requirements for healthcare entities, do not hesitate to contact our Healthcare specialists, or call us at 1-800-239-1474.

]]> <![CDATA[Healthcare Services Advisory - CMS Issues Proposed Rules on New ACOs for HealthCare Providers]]>
Ronald Finkelstein

The Centers for Medicare & Medicaid Services (CMS) recently issued its first proposed rules on Accountable Care Organizations (ACOs) and announced three incentives that it hopes will encourage participation by medical groups and hospitals. In the announcements by CMS, the Obama administration provided its first details on the likely composition and operation of ACOs in which participation is voluntary. A major change will be that rather than rewarding health care providers on volume of Medicare services, ACOs will compensate them on meeting standards of low costs and high quality performance.

CMS issued the proposed regulations on March 31. The rules would require ACOs to meet minimum performance standards in these areas:

  • Patient/caregiver care experience
  • Care coordination
  • Patient safety
  • Preventive health
  • At-risk population/frail elderly health

CMS said it plans to issue final rules this year, but did not list a target month.

On May 17, the CMS released details on its three initiative programs for ACOs:

  • A Pioneer ACO model that will be available to providers this summer.
  • An Advance Payment ACO Model that would provide additional up-front funding to providers to support the formation of new ACOs.
  • A series of Accelerated Development Learning Sessions on ACOs.

If you would like additional information about the CMS’s proposed rules and its initiative programs on ACOs, do not hesitate to contact us at 1-800-239-1474.

]]> <![CDATA[Healthcare Services Advisory - FASB Considers Changes on Net Revenue Bad Debt and Doubtful Accounts]]>
Ronald Finkelstein

The Financial Accounting Standards Board (FASB) is considering the issuance of an Accounting Standards Update that would have new requirements for healthcare entities on the presentation and disclosure of net revenue, provisions for bad debt and allowance for doubtful accounts.

On December 17, 2010, the FASB issued a second Exposure Draft (ED) "Health Care Entities (ASC Topic 954) : Presentation and Disclosure of Net Revenue, Provisions for Bad Debts and Allowance for Doubtful Accounts".

The 60-day comment period for the Exposure Draft closed on February 15. The FASB did not announce a date for when it plans to issue a final Accounting Standards Update (ASU).

However, the FASB can be expected to issue an ASU by June 30, 2011 and it likely will be very similar if not identical to the second Exposure Draft.

Some key points of the ED ASC Topic 954 are summarized as follows:

The amendments would require a healthcare entity to:

  • Change the presentation of its statement of operations by reclassifying the provision for bad debts from an operating expense to a reduction from revenue (net of contractual allowances and discounts).
  • Include enhanced disclosure about how the healthcare entity considers collectability in determining the amount and timing of revenue and bad-debt expense.
  • Include disclosures of revenue (net of contractual allowances and discounts) as well as a reconciliation of the activity in the allowance for doubtful accounts by major payor type.

Changes and Improvements on Current GAAP:

As noted above, the amendments would change the presentation of the statement of operations and add new disclosures that are not currently required. FASB considers the presentation and disclosure changes improvements from current GAAP because:

  • It would result in the presentation of an amount of net revenue (after any provision for bad debts) that is closer to the amount that the healthcare entity ultimately expects to collect. The provision for bad debts still would be required to be disclosed on a separate line as a reduction from revenue (net of contractual allowances and discounts) in the statement of operations.
  • The new disclosures would assist users of financial statements to better understand how a healthcare entity has considered collectability and customer credit risk in applying its revenue recognition policies.

The effective date will be determined after a FASB Task Force considers the feedback on the proposed amendments. The amendments related to the presentation of the provision for bad debts in the statement of operations would be applied retrospectively to all prior periods presented. The disclosures required by the amendments would be provided for the period of adoption and subsequent reporting periods.

If you would like additional information on the FASB's proposed changes for healthcare entities on accounting for revenue, bad debts and doubtful accounts, do not hesitate to contact us at (305) 373-5500 or at (954) 760-9000.

]]> <![CDATA[Healthcare Services Advisory - Congress Postpones Medicare Reimbursement Cuts until January 1 2011]]>
Ronald Finkelstein

Congress on November 29 postponed a long-scheduled cut in Medicare reimbursements to physicians until January 1, 2011. The cuts, at an average rate of 23 percent for services, were scheduled to take effect on December 1, 2010.

The postponement is included in The Physician Payment and Therapy Relief Act of 2010. President Obama is expected to sign the bill into law, as he has done with several other bills that delayed the cuts. Several congressional leaders and the White House, in a statement, said on November 29 that they hope Congress will pass additional legislation that would delay any Medicare reimbursement cuts until January 1, 2012.

The cuts in Medicare reimbursements to physicians have been pending since the Centers for Medicare and Medicaid Services (CMS) announced them on October 30, 2009.

In preparation for the changes in Medicare reimbursements, whether they take place on January 1, 2011 or a later date, medical practice groups and individual physicians should be taking the following actions:

  • Analyzing the financial impact on reducing the number of Medicare patients. However this analysis must take into account the fact that commercial carriers may likely follow with similar fee reductions
  • Gravitating towards a simple, no-insurance, concierge medicine fee-for-service practice model
  • Beginning or continuing with cost-reduction plans at their practices
  • Evaluating clinical integration options such as an IPA or a Health System joint venture ACO

If you would like additional information on the scheduled cuts in Medicare reimbursements, do not hesitate to contact us at (305) 373-5500 or (954) 760-9000.

]]> <![CDATA[Healthcare Services Advisory - Cuts in Medicare Reimbursements to Physicians Could Begin on December 1 2010]]>
Ronald Finkelstein
A long-scheduled cut in Medicare reimbursements to physicians, at an average of 21.2 percent for services, is set to take effect on December 1, 2010. As of mid October, there were indications that there might not be another postponement. Thus, medical practice groups and individual physicians should be preparing for the impact of those cuts and resulting declines in revenue - if they are not doing so already.
 

The Centers for Medicare and Medicaid Services (CMS) announced the scheduled Medicare cuts on October 30, 2009.

The 21.2 percent cut was originally scheduled to take place on January 1, 2010. But Congress has delayed it several times. Now, there is a prospect that there will not be another postponement. Congress is on recess until a to-be-determined date after the November 2 elections. However, CMS has authority to postpone the cuts in Part B Medicare reimbursement.

MBAF will issue a Healthcare Services Advisory if the cuts take effect on December 1, or if there is another postponement.

The scheduled cuts in Medicare reimbursement may be higher than 21.2 percent for many surgical specialties and other higher-cost services.

In preparation for the cuts, whether they take place on December 1 or a later date, physicians should be taking the following actions:

  • Analyzing the financial impact on reducing the number of Medicare patients - however this analysis must take into account the fact that commercial carriers may likely follow with similar fee reductions.
  • Gravitating towards a simple, no-insurance, concierge medicine fee for- service practice model.
  • Beginning or continuing with cost-reduction plans at their practices.
  • Evaluating clinical integration options such as an IPA or a Health System joint venture ACO.
If you would like additional information on the scheduled cuts in Medicare reimbursements, do not hesitate to contact us at (305) 373-5500 or (954) 760-9000.
]]> <![CDATA[Healthcare Services Advisory - First Changes in 2010 Health Care Law are Effective as of September 23]]>
Ronald Finkelstein
The first provisions of the 2010 health care law took effect on September 23 and will lead to some significant changes for almost all businesses in the operations and costs of their health care plans. That day is the six-month anniversary of the enactment of the Patient Protection and Affordable Health Care Act, H.R. 3590.
 

Employers have until the next anniversary date of their plans to begin implementing the changes that are effective on September 23. 

For existing plans and new plans, the first changes include:

  • A prohibition on lifetime and restrictive annual dollar maximums of benefits for covered employees and their covered dependents
  • A ban on pre-existing conditions exclusions for dependents under age 19
  • Mandated coverage to age 26 for dependents not eligible for other group coverage
  • Prohibition of rescission of plans except for fraud

Health care plans that begin coverages on after September 23 will have these additional requirements:

  • Preventive care must be covered without cost sharing
  • Group plans must cover emergency room services without prior authorization, in or out of network
  • Insured group health plans will be subject to non-discrimination rules concerning highly compensated individuals
  • Group plans must allow designation of OB/GYN or a pediatrician as a PCP
  • Employer plans must have external appeals processes approved by the U.S. Department of Health & Human Services 
 
The 2010 law also mandates a series of other changes in health care plans, beginning on March 23, 2011 and in succeeding years through 2014.
 

If you would like additional information about the 2010 health care law and new requirements for employers, do not hesitate to contact us at (305) 373-5500 or (954) 760-9000.

]]> <![CDATA[Healthcare Services Advisory - Medical Group Bank Financing - How to Get the Most Out of Your Lender]]>
Ronald Finkelstein

Despite the financing difficulties most industries are experiencing, banks are still lending to medical practices. As long as there is a good credit history (e.g., no bankruptcies), adequate cash flow and/or collateral, and reliable financial reporting, banks still view medical practices as having minimal lending risk. That being said, to maximize the likelihood of having your credit approved, it is important to present not only financial information to your lender, but also a qualitative assessment of your practice.

Since banks generally rely on cash flow to repay the debts of a medical practice, it is important to present a clear, concise financial picture to your lender. A cash flow forecast may need to be presented that demonstrates the practice’s ability to make monthly loan payments and/or provide adequate collateral to cover outstanding debt.

As changes in the practice occur, whether positive or negative, it is important to share this information with your lender. Banks don’t like surprises. Alert your lender of any significant changes that may affect your practice’s cash flow. So if you plan on purchasing an EMR or renovating your office, consider updating your forecast to reflect how these one time cash requirements will be financed and ultimately repaid.

While financial matters play an important role in the credit approval process, a positive qualitative assessment can go a long way. Educate your lender about the specialties offered by your practice, the quality of your providers, your market niche, what sets you apart from your competition, recent investments in new technologies, physician recruitment efforts, opportunities to increase ancillary revenues, as well as other trends.

Finally, it is advisable to work with a bank that understands health care financing. For example, accounts receivable ("A/R") in a medical practice, commonly relied on as collateral by a lender, is much different than A/R in most other businesses (due to the contractual reimbursement nature of health care A/R). So why have to explain what a contractual adjustment is to a banker who has never heard of the term before?

If you would like to discuss how we can help you with your credit needs, please call one of MBAF’s healthcare experts at (954) 760-9000 or (305) 373-5500.

]]> <![CDATA[Healthcare Services Advisory - Health Care Reform Legislation - A Look at the Tax Provisions]]>
Ronald Finkelstein

The Patient Protection and Affordable Care Act (H.R. 3590), passed by Congress on Sunday, contains numerous tax provisions.

The Reconciliation Act of 2010 (H.R. 4872), which also passed the House on Sunday, contains many other tax items, including extending the general exclusion for reimbursements for medical care expenses under an employer-provided accident or health plan to any child of an employee who has not attained age 27 as of the end of the tax year and codifying the economic substance doctrine. The reconciliation bill has not yet passed the Senate.

It is apparent that the IRS will play a large role in broadening insurance coverage through tax incentives and penalties on the one hand, and on the other hand collecting new taxes to pay part of the costs.

The bill contains an excise tax on "Cadillac" insurance plans – those with more generous benefits and higher premiums than typical plans – an excise tax on medical devices, "industry fees" on various health-related industries and a Medicare surtax of .9 percent on wages and 3.8 percent on investment income for individuals with adjusted gross incomes over $200,000 for an individual, $250,000 for couples. Except for seniors, it raises the threshold for the itemized medical deduction from 7.5 percent of adjusted gross income to 10 percent. Beginning in 2013, it will limit contributions to tax-advantaged flexible spending accounts for health expenses.

The bill aims to broaden coverage, with individual and employer mandates, and those mandates are backed up by using the IRS to assess payments on individuals who choose among the many tax provisions in the Patient

Protection and Affordable Care Act are the following:
 


If we can be of assistance, please do not hesitate to contact us at 305-373-5500.

]]> <![CDATA[Healthcare Services Advisory – Tax Legislation Update]]>
Ronald Finkelstein

The Senate has voted 60-39 to begin consideration of its own version of health care reform, the Patient Protection and Affordable Care Act (H.R. 3950). The Senate Democratic leadership crafted this version over the past several weeks with the goal of attracting the 60 votes needed to avoid filibuster in the Senate. Debate is expected to begin the first week in December. Although 60 Senators agreed to prevent a filibuster of the legislation, thereby allowing its consideration to begin, it is not believed that there are sufficient votes to pass the proposed legislation in its current form. Accordingly, a number of amendments are expected to be considered by the Senate, and its eventual success is by no means assured.

The House voted 220-215 on Nov. 7 to pass its own version of health care reform, America's Affordable Health Choices Act (H.R. 3962). If the Senate is successful in passing its version of health care reform by the full Senate, a conference would be necessary to reconcile differences in the two bills and might not be completed until after the end of the year.

The tax provisions in the Senate bill generally follow those reported by the Senate Finance Committee on Oct. 13, but include several significant changes, such as:

  • an additional 0.5 percent Medicare tax on employees' share of wages in excess of $200,000 for single taxpayers and $250,000 for married couples, beginning in 2013;
  • a five percent excise tax on the cost of elective cosmetic medical procedures, beginning in 2010;
  • higher premium costs allowed before the 40 percent surtax on high-cost insurance would apply;
  • the assessable payment on individuals who do not obtain a minimum level of health coverage would be phased in at a slower rate; and
  • the assessable payment on employers who do not offer affordable health care plans is modified.

The Senate legislation retains the annual fees assessed on health insurers ($6.7 billion per year,) drug manufacturers and importers ($2.3 billion per year), and manufacturers and importers of medical devices ($2 billion per year, reduced from $4 billion per year in the Finance Committee bill). It also retains revenue offsets that would:

  • limit Flexible Spending Account (FSA) contributions to $2,500;
  • increase penalties on improper Health Savings Account (HSA) distributions; and
  • expand Form 1099 information reporting to include payments made to corporations and for sales of property.

If we can be of assistance, please do not hesitate to contact us at 305-373-5500 or 954 760-9000.

]]> <![CDATA[Healthcare Services Advisory - Valuable Net Operating Loss Carryback Period]]>
Ronald Finkelstein
Lydia Glatz

Is your practice suffering from economic losses and strapped for cash this year? Well, the American Recovery and Reinvestment Act of 2009 may be just the prescription that the doctor ordered. Congress, in its effort at improving and reviving the ailing U.S. economy, passed the Act at the beginning of 2009 which included a provision extending the net operating loss carryback period for eligible businesses to claim tax refunds from two years to five years.

Taking advantage of the longer carryback period, requires the filing of an election with the IRS by September 15, 2009 for healthcare providers doing business as C-corporations or October 15, 2009 for providers doing business as sole proprietors, partnerships and S corporations.

Healthcare providers sustaining operating losses during 2008 should consider and evaluate the advantages of the longer carryback period election in conjunction with year end tax planning. Tax refunds could be utilized to pay down debt, expand operations by taking advantage of today’s low market values and interest rates, purchase needed office and medical equipment or to fund this year’s retirement plan.

Our team of healthcare and tax experts can help you navigate through today’s uncertain times. Please do not hesitate to contact us at (954) 760-9000.

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