The Centers for Medicare and Medicaid Services (CMS) reports that total U.S. health care spending now exceeds $4 trillion per year. Health and medicine are hyper-competitive, highly-regulated industries. All health companies and medical practices must have the right accounting process in place. While accounting is important for every type of business, healthcare companies face some unique challenges. In this article, our medical accounting professionals highlight four reasons why accounting in health care is different from accounting for other types of businesses.
- Unusual Billings Process: Direct Payments, Private Insurance, Government Program, etc
A company needs revenue to keep the lights on. Billing in the health care industry is unusually complex. Depending on the specific nature of your medical practice or health care business, you may bring in revenue through a combination of direct payments from patients, direct payments from other businesses or organizations; private health insurance coverage, or reimbursements from a state or federal government program, such as Medicare or Medicaid, An accountant with experience in the health industry can help your team put the process in place to manage billing.
- Health Accounting Must Be Fully Compliant With HIPAA’s Privacy Rule
The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that requires medical practitioners and other health industry companies to protect the confidentiality of sensitive patient medical records. It is imperative that companies and organizations operating within the health care industry ensure that their accounting procedures are fully HIPAA compliant.
- Measuring Business Performance is Complicated (Unique KPIs)
Accurate, comprehensive financial books help business owners and operators ensure that their company is meeting key metrics. Medical practices and healthcare companies often have unique KPIs (key performance indicators). An accountant with specialized experience and expertise in the health industry can help you put the numbers in the right perspective.
- Health Care Companies May Have Complex Tax Needs
Taxes are a part of business. In many cases, medical practices and other healthcare businesses have complex tax needs. It is crucial that healthcare businesses in Atlanta and healthcare companies in New Orleans work with an accounting professional who has the skills and experience to handle their taxes. A well-qualified accountant for health care will make sure that your taxes are prepared and filed in a timely manner and that your company is not paying more taxes than is actually owed. If you have any specific questions about healthcare accounting and tax preparation, we are here to help.
Contact Our Atlanta and New Orleans Health Accountants.
At Williams Accounting & Consulting, our business accountants have extensive experience working with clients in the healthcare industry. If you have any specific questions or concerns about accounting practices for healthcare businesses, we are here to help. Give us a call at 770-964-4100 or send us a message online to set up a strictly confidential appointment. From our offices in Atlanta and New Orleans, we serve healthcare industry businesses throughout both regions.