There are several tax law changes pending for 2013 that will significantly revise favorable business tax provisions for medical practices.
This law allowed first-year depreciation equal to 50 percent of the asset’s cost is allowed for qualifying property placed in service after 2011 and before January 1, 2013. The favorable bonus depreciation provisions are scheduled to expire December 31, 2012. After expiration, business taxpayers acquiring machinery, office equipment and other depreciable assets will revert to the modified accelerated cost recovery system (MACRS) or other alternative depreciation methods for determining annual depreciation deductions.
For example, the depreciation deduction and tax effect under current law for new office equipment:
|Purchase Date||Cost||First Year Depreciation Deduction||Estimated Tax Savings at effective 35% Tax Rate|
Sec 179 Expense:
Section 179 allows for certain small business taxpayers to deduct some or all of the costs of acquiring certain depreciable assets. Under current law, the amount that may be deducted for equipment purchases decreases from $139,000 in 2012 to $25,000 in 2013. At an effective tax rate of 35%, the 2012 Sec 179 deduction results in potential tax savings of $48,650 vs. $14,452 in 2013 for the same purchase.
As each entity or individual situation is different, please contact your tax advisor regarding such matters. This information represents GroupOne’s interpretation of the various issues presented and should not be considered legal or tax advice. It should be used for informational purposes only.
A recent national report entitled “Making IT Meaningful: How Consumers Value and Trust Health IT” surveyed patients across the U.S. to collect feedback on EHRs. According to the study, 3 out of 4 patients on paper systems want their doctor to adopt an EHR. Of note, more than 80 percent of all patients surveyed, regardless of whether their physician currently uses an EHR, saw value in EHRs. 73 percent of respondents said their doctor’s use of an EHR has a positive impact on the overall quality of healthcare services.
In a recent Accenture survey of 1,100 U.S. patients, 90% prefer web-based access to health information and education, and 72 percent want to book, change or cancel physician appointments online.
Through December 31, 2012, GroupOne Health Source will be giving a free iPad 3 to each new licensed provider who signs an agreement to partner with GroupOne for their medical billing services or signs a OneRate agreement from GroupOne Health Source. In addition, the OneRate solution includes complimentary use of the certified eClinicalWorks EHR system. This offer is exclusive to new GroupOne clients.
Any provider who signs a new eClinicalWorks license purchase agreement with GroupOne by 5:00 PM CST on December 24th, 2012 will be eligible to defer, interest free, eClinicalWorks license fees over a 12 month period. The fees can be spread out over 12 equal, monthly installments.
Since stimulus payments have begun, you effectively could receive stimulus payments of $15,000 - $21,250 per provider before you pay the majority of the costs for your new, Meaningful Use Certified eClinicalWorks EMR system.
CMS Has Issued nearly $7B in EHR Incentive Pay During the Past Year and the Maximum Possible Incentive Payment is Being Reduced.
As of the end of August 2012, $6.9 billion in meaningful use incentive payments had been distributed to more than 143,000 physicians and hospitals, according to CMS estimates. According to recent CapSite study, 69% of surveyed physicians own an EHR and 43% of EHR owners have successfully attested to Stage 1 of Meaningful Use. The maximum payment, under the Medicare plan, for eligible providers that did not begin attestation by Oct 3, 2012 has been reduced by $5,000 from $44k to $39k. The maximum Medicare payment will be reduced by another $15k for providers that do not qualify in 2013. Act now to avoid future payment reductions.
Unlike other vendors, GroupOne does not require a down payment or deposit when you sign GroupOne's agreements. Payments are deferred until you are ready to implement your EHR. Sign our agreements prior to the end of the year to take advantage of the end of the year benefits and promotions and to reserve your spot on our implementation calendar - without current out of pocket cash.
The transition to a modern medical system is no longer a question of if, but when. The benefits are numerous, for your practice, patients, staff and overall lifestyle. This could make a great New Year's Resolution.