For most small business owners, closing up shop is relatively simple — perhaps they take down their signs, get rid of inventory and turn the lights off. But for a health care practitioner closing a practice, the issues are more complex.
You have a duty to preserve medical records and ensure your patients have access to them. There may even be liability issues after your death that must be addressed in your estate plan.Read more
When considering joining or merging with a medical practice, you need to perform a due diligence investigation into the operations of the practice, as well as the finances.
Much of the due diligence you perform in checking into a practice’s finances will overlap with the operations due diligence. For operations information, it’s important to interview current and former practice employees. It’s not uncommon for many of the policies of a practice to be unwritten. The more aspects of the agreement you understand and can incorporate into a written document, the better. At the very least, you want to know the situation you’re getting into. For example, here are some considerations:Read more
As you know, medical practitioners are subject to a federal law that makes it a felony to influence the referral of federal health care business, including Medicare and Medicaid.
For example, if a physician refers a patient to a specialist and receives part of the specialist’s Medicare payment in exchange, the doctor has committed a felony under the Anti-Kickback Statute and could be subject to criminal and civil charges. The physician could also be excluded from Medicare and other federally funded health care programs. Read more
With the increase in health plans requiring members to pay for all or part of their office visits, practices are faced with the challenge of asking patients for full payment. This can be upsetting for the patients and uncomfortable for staff members. Here are eight strategies for improving collections, including preparing for time-of-service collections, setting up prompt-pay discounts and showing staff how to interact with patients. Read more
Like any well-run business, a medical practice needs to step back periodically and try to get a bird’s-eye view of where it has been and where it is going. A good time to perform such a review is at the end of the calendar year. Go into the meeting with a plan, prepared to focus on three critical areas: corporate, financial and operational planning.
It is helpful to have a trusted adviser, such as your accountant, facilitate the meeting. An adviser who knows your practice can keep the agenda focused on the business issues, diffuse tense emotions and provide insight based on experience with other medical offices. Read more