The health care industry has been moving in a different direction in the last few years. Many hospitals are buying out physicians, practices and medical offices and combining them under the hospitals umbrella. There are many reasons for this movement. The networking, referral networks and costs of doing business. Hospitals have unique advantage since most of them run under the 501 (c)3 umbrella and are considered nonprofit organizations and are tax exempt.
Most medical offices are competing with giants who have unfair advantage due to the resources available to them.
In most of the United States this trend continues and more and more are now functioning as part of the hospitals.
Here are the main changes that have taken place:
- Change in coverage do to Affordable care act
- Aging population (More people are covered by Medicare)
- Aging physician workforce
- More demand for limited number of physicians, increasing costs of compensation
- More nurse practitioners and physician assistance providing care
- Electronic health records (increase in costs)
- Increase in high deductible health insurance plans
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All those changes require medical practices to streamline and carefully look at their financial situation. Having a relationship with CPA firm that understands the current challenges is critical and could help you stay focused on running your practice and make appropriate changes at appropriate time.
We understand the financial ramifications of these industry issues and can provide the information and guidance you need to maintain financial health in today’s competitive market.
As your accountant, we will work closely with you to develop a thorough understanding of your immediate concerns and your goals. We are here to help when you need us and to help you stay ahead of your challenges. Our goal is to work with you in every aspect of your financial decisions. Physicians must pay attention to the business aspects of a medical practice.
Numbers are data. What any physician needs from his or her CPA is translation of data into the relevant information. In business situations, most numbers are data – the value a medical CPA brings to the medical practice is applying his or her knowledge, experience and judgment to turn data into information that will help guide the practice to success.