Budget Cuts, Payment Freezes, and Tariffs In an attempt to continue tracking the latest actions of the federal government’s legislative and executive branches affecting the healthcare industry since the last article was released in March, this article summarizes recent events in Washington and the impact of these changes on providers and patients. During the early months of the Republican Party’s government trifecta (controlling the White House, Senate, and House of Representatives), both the Trump Administration and Congress have laid the groundwork for seismic change to the U.S. healthcare industry. In an attempt to continue tracking the latest actions of the…
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RAND Corporation 2022 Study Published in JAMA A study conducted by the RAND Corporation and published in the January 2022 issue of the Journal of the American Medical Association (JAMA) seeking to determine whether health systems primarily incentivize volume or value in their physician compensation models found that almost all physicians are still compensated through a volume-based model that rewards productivity over the value of care provided. This article summarizes the results of the study. A study conducted by the RAND Corporation and published in the January 2022 issue of the Journal of the American Medical Association (JAMA) seeking to…
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Healthcare Regulatory Environment (Part III of VI) In the March/April 2018 issue of The Value Examiner, the author underscores the importance of undertaking rigorous due diligence to better understand the regulatory burdens and operational risks notwithstanding efforts to repeal and replace.
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CBO: Partial Repeal of ACA Could Lead to 18M People Losing Insurance Some 18 million people could lose health insurance in the first year after a partial repeal of the Affordable Care Act, and the number could grow to 32 million by 2026, according to a Congressional Budget Office report. However, Sen. Orrin Hatch, R-Utah, said the analysis represented “a one-sided hypothetical scenario” that did not account for reforms lawmakers could implement. To read the full article in The New York Times, click: Health Law Repeal Could Cost 18 Million Their Insurance, Study Finds.
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An Era of Reform—The Four Pillars, Volumes I and II Since 1950, the U.S. population has doubled from just more than 152 million to an estimated 320 million. In this same period, the average life expectancy has increased from approximately 68 years to over 78 years. This increased life expectancy and accompanying rise in the incidence and prevalence of diseases, conditions, and injuries is driving demand for healthcare services. Cost concerns and a rapidly evolving regulatory and legal environment have created new opportunities in healthcare consultancy for large and small firms. This two-volume set is designed to serve as a…
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Two provisions of the affordable care act—the premium tax credit and the individual shared-responsibility payment (the individual mandate)—are complex and making it extra challenging for both taxpayers and preparers filing individual tax returns for 2014. Early on this tax season, the IRS discovered some errors, complications, and adversities for some individuals and provided relief says Annette Nellen, tax professor and director of the MST Program at San José State University. In her article, she summarizes the health care act guidance and relief issued in early 2015 and notes health care updates relevant for 2015 and beyond. [button color=”blue” link=”http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2015/Tax/update-on-affordable-care-act.jsp” target=”_blank” font=”arial” align=”left”]To learn…
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The Treasury Department and Health and Human Services announced last week that in the coming weeks it will introduce “consumer-friendly” resources for taxpayers to use to comply with the new healthcare rules. Starting this year, taxpayers are facing additional paperwork for this year’s filing, causing concern for taxpayers and their accountants. Tax filers will now have to report whether they had healthcare coverage in 2014 and if they received tax credits to help buy insurance. Those who didn’t have healthcare coverage will owe a fee. The joint agency announcement though hasn’t yet specified what the tools and resources will be,…
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Despite all the talk about new changes underway now that Republicans will assume control of Congress and governorships in 31 states, much of the current tax issues will look the same in 2015 as they did in 2014, according to Forbes. Below is a snapshot of the top nine tax stories to watch in 2015: Business Taxes. Will 2015 be the year of business tax reform? Probably not, according to Forbes, as the Affordable Care Act and battles over spending will continue to swallow up lawmakers’ focus and time this coming year. Dynamic Scoring. GOP leaders have introduced rule changes…
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Compensation for PCPs is increasing The increasing supply shortage of primary care physicians (PCPs) will have a significant impact on physician compensation. In turn; this will have an equally powerful effect on the valuation of PCP practices.
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How the ACA impacts the valuation of physician-owned hospitals Nick Janiga and David Walline of HealthCare Appraisers, Inc. (HAI) examine how the Affordable Care Act (ACA) affects the valuation of physician-owned hospitals and what the future holds for the 240 such medical institutions across the country.
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Value metrics and capital formation Robert Cimasi serves as chief executive officer of HEALTH CAPITAL CONSULTANTS (HCC). Mr. Cimasi’s firm is a nationally recognized healthcare financial and economic consulting agnecy headquartered in St. Louis, MO, serving clients in 49 states since 1993. He is author of a three-volume set that offers a comprehensive reference guide to the factors involved in consulting with and valuing healthcare practices. In this article, Mr. Wandtke reviews Volume Two, Professional Practices. See http://www.healthcapital.com/advisersguide.
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Changes in the capital markets utilized in financing healthcare transactions have transformed the way that the healthcare providers and enterprises operate within the current transactional marketplace, explains Robert James Cimasi. These changes, particularly in recent years following the “Great Recession,” relate to both the availability of capital sources and the types of financial instruments used. As the healthcare industry faces a changing paradigm, the increased need for healthcare consulting services has been met by professionals who have entered the consulting arena from a diverse array of professional backgrounds, e.g., accounting, finance and economics, insurance, etc.
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Details Found in IRS Explanation Issued Wednesday; $20,000 Figure Based on a Family of Four. In a final regulation issued Wednesday, January 30, 2013, the Internal Revenue Service (IRS) assumed that under Obamacare the cheapest health insurance plan available in 2016 for a family will cost $20,000 for the year. Under Obamacare, Americans will be required to buy health insurance or pay a penalty to the IRS. The news was reported by Huffington Post, CNS News, Catholic News, Investment Watch, Economonitor, Naked Capitalism, Investor Village, and more. The Journal of Accountancy offered detailed analysis of the new regulations, and NPR weighed in…
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Tips Medical Professionals Can Use to Face the Public with Confidence Sue Jacques at Physicians Practice reports: Being a skilled medical professional doesn’t necessarily mean that you’re comfortable speaking in public, especially when it comes to talking to a group of peers. If the mere thought of addressing even a small audience causes your knees to knock, you’re not alone. This universal anxiety is provoked by a number of factors, including lack of experience, poor preparation, and discomfort being the center of attention. Effective verbal communication is essential for personal and professional success, yet getting your messages across clearly can…
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Ahead of the new health-care law, small firms worry about crossing the crucial 50-person threshold — and about rising premium rates Emily Maltby at the WSJ Law blog reports on increasing concerns about the forthcoming healthcare laws among small business owners. This seems to be a prominent issue and concern among small business owners, and has been noted in most every major media outlet in recent weeks, from the New York Times to Forbes, CNN, US News & World Report, FoxNews, The Economist, The Hill, the Washington Post, and more:
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Spotlight On Payment Reform, Alternative Care Models, and Physician Employment Agreements Debra Beaulieu at Fierce Practice Management weighs in with Top 10 Physician Practice Trends to watch in 2013, a year that will not only be a watershed for the U.S. healthcare system, but, for many physician practices, a pivotal one professionally—where the’ ability to adapt and evolve may make the difference for many physicians between folding and thriving in a post-health-reform world. Here’s what Ms. Beaulieu foresees as key trends:
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Next Year’s New Medicare Tax Provides Another Incentive to form an S Corporation Investors often use S corporations to minimize self-employment and Medicare taxes. Next year’s new 3.8% tax on net investment income provides another incentive to form an S corporation. Thomas Wechter, JD, discusses in this article at The Tax Insider the new rules that take effect in 2013.
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The Big Picture: Medicaid Impact, Patient Demand, Physician Pay, and More. Physicians Practice, a leading practice management resource, has examined the implications of the historic Supreme Court healthcare decision. Eschewing opinion about John Roberts or the impact on insurance company stock prices, the coverage helps physicians understand what it means for them. Offering commentary as well as analyzing the impact on practicing physicians, highlights from its analysis include:
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Mandate Survives as a Tax. Limits on How Widely Feds Can Control States Medicare. No Other Limits. Brent Kendall, Louise Radnofsky, and Jess Bravin of the Wall Street Journal report the news:
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Uncertainty Surrounding the Court’s Pending Decision Causes Transaction Delay Private Equity International’s Graham Winfrey reports that whatever way the Supreme Court rules on healthcare may end up driving more industry activity.