Practices often allow their payer contracts to renew automatically each year without re-examining the terms. But the practice may have changed and added new providers, new services, or a larger patient panel, and perhaps gained an enhanced bargaining position. If so, you may want to make changes to the contract.
An IRS Revenue Ruling went into effect on July 1, 2015 that could cost your company a penalty of $100 per day, per employee (up to $500,000). Under Internal Revenue Code § 4980D, the penalty could be $36,500 per year per employee for employers who do not offer insurance coverage but instead seek to reimburse their employees for insurance purchased on the individual market. If you’re not in compliance, this penalty could put you out of business.
The 3.8 percent net investment income tax (“NIIT”) under the Affordable Care Act (“ACA”) has been in effect since 2013 and remains in effect for tax year 2015 and beyond. The taxpayer is liable for NIIT on the lesser of their net investment income (“NII”), or the amount by which their modified adjusted gross income (“MAGI”) exceeds the threshold based on filing status.
As the economy slowly crawls back, many not-for-profits (“NFPs”) are still experiencing stagnant or even declining revenues, prompting them to look to nontraditional types of revenue sources—including licensing agreements.
How you can ensure its effectiveness?
Every medical practice is governed in some fashion or another, whether by an individual owner or a formal board of directors. Governance is a difficult job for physicians who are already working long hours providing care to patients. They must find ways to cope with regulatory pressures, stressful payer relationships, sophisticated technologies and rising patient expectations. Fortunately, a competent governance structure can help physicians meet those challenges.
Including a variety of benefits in your compensation package can help you not only attract and retain the best employees but also manage your tax liability.