Uncategorized

Coronavirus Attacks Medical Practice Finances – Here Is The Rx

The potential for further financial hardship awaits physicians who are unprepared for the double punch of both a continuing pandemic and an economic downturn in 2021.

Office visits are cut by fear and by social distancing, folks are finding they prefer telemedicine, and surgeries are on hold, meaning revenue streams are trickling in or running dry. In addition, your investment portfolio is on the corona-coaster. It will take a lot for doctors, dentists and other healthcare providers to weather the continuing financial storm. Look to improve liquidity first.

Here is a list of things to start working on today for you and your practice that will have an immediate impact:

1. Revisit your budget and expenses;
2. Examine your debt-to-income ratio;
3. Conserve cash;
4. Put major purchases on hold;
5. Make sure if you received any financial assistance from the SBA or HHS you are documenting and reporting as required;
6. Look into refinancing your mortgage while rates are at historic lows;
7. Look into refinancing your student loans while you’re at it too, if you don’t qualify for PSLF;
8. Check up on your investments, asset allocation and diversification – ask for a portfolio audit;
9. Don’t forget your emergency fund;
10. Schedule a meeting for proactive tax planning for both 2020 and 2021. Make sure you are taking advantage of every opportunity to minimize your tax liability!

Reach out to us: Don’t underestimate the importance of tax planning in times like these and taking advantage of available tax credits. Although physician practices, clinics, surgery centers, dental offices, and other health care businesses were among the most common recipients of loans under the Paycheck Protection Program, that alone is not enough to help you weather the financial storm still ahead. Talk to us about your viable options. A new financial action plan or restructuring may help you and your practice weather the economic pressures on the medical field right now. Prepare to position yourself for the recovery after the pandemic with:
• Budget analysis
• Cash flow analysis
• Expense analysis
• New financial projections

Call us toll free at 855-542-7537 or email CPA@Fuoco.com.

Uncategorized

Pandemic Hurt Physicians But PPP And Tax Credits Can Help

Big drops in patient visits during the pandemic have decreased U.S. primary care physicians’ revenues, a Harvard study reports in the June 25th issue of Health Affairs.

Researchers report that, “…..as a result of decreases in office visits and fees for services from March to May during the pandemic, a full-time primary care physician will lose an average of more than $65,000 in revenue in 2020. Overall, primary care practices nationwide stand to lose nearly $15 billion.

The losses may force many practices to close, and weaken the health system dramatically. Revenue may continue to fall with a second wave of infection this year or if reimbursement rates for telehealth visits return to pre-pandemic levels. There is already a shortage of primary care providers in the United States.

Our healthcare accountants and advisors understand that half of primary care practices are small and physician-owned with limited access to capital and other support that could help them weather the pandemic storm. Thus the Fuoco Group and team at TFG Health Services has developed a presentation to assist healthcare providers in understanding and maximizing the SBA assistance out there, whether PPP loans, or EIDLs, or available pandemic tax credits. Power point presentation is attached HERE.

Since this article was published the The Consolidated Appropriations Act, 2021, has made additional PPP Loan money available, streamlined forgiveness, and extended many tax breaks for medical groups. Let us help guide you if you missed round one, or would like to dip into the well a second time. More info here: https://www.fuoco.com/component/content/article/641-new-ppp-loan-parcel-plus-tax-provisions-packaged-in-2021-covid-relief-bill

Reach Out To Us: Researchers said their findings show the need for a financial plan to support independent primary care doctors and small, independent practices. Although physician clinics, surgery centers, dental offices, small hospitals, and other health care businesses were among the most common recipients of loans under the Paycheck Protection Program, that alone is not enough. Talk to us about your viable options. We can help you gather the information and calculate the numbers you need to present to your bank for forgiveness. A new financial action plan or restructuring may help you and your practice weather the economic pressures on the medical field right now. Prepare to position yourself for the recovery after the pandemic with:
• Budget analysis
• Cash flow analysis
• Expense analysis
• New financial projections

Our tax experts can also help dentists and physicians take advantage of tax credits available, contact us with questions at CPA@Fuoco.com.