Industry

Healthcare

Financial Clarity for Your Practice

A stethoscope resting on a clipboard beside a plant

Healthcare professionals spend their time caring for patients, but the practice itself must still operate as a financially healthy business.

Revenue cycles, reimbursements, payroll, provider compensation, equipment, staffing, and overhead all affect practice profitability.

A physician and an adviser working at laptops in a medical office

Healthcare Practice Accounting

We can help practices account for:

Patient revenue
Insurance reimbursements
Accounts receivable
Payroll
Provider compensation
Medical supplies
Equipment
Facility costs
Operating expenses
Financial statements
Cash flow

A clinician in scrubs and a colleague reviewing figures at a desk in a busy medical office

Revenue & Reimbursement Reconciliation

Healthcare revenue can involve several stages:

Amount Billed → Contractual Adjustment → Insurance Payment → Patient Responsibility → Collection/Write-Off

Accounting procedures should help reconcile these activities with actual deposits and outstanding receivables.

A physician, an adviser and a colleague reviewing figures together at a desk

Provider Compensation

Practice owners and providers may receive compensation through salary, bonuses, productivity-based arrangements, partnership payments, or distributions depending on entity structure.

We help ensure compensation is properly reflected for accounting and tax purposes.

A physician and an adviser beside medical imaging equipment

Equipment & Capital Expenditures

Medical practices often make substantial investments in equipment and technology.

We evaluate capitalization and depreciation treatment, including potential application of:

Section 179
Bonus depreciation
Regular depreciation
Leasehold improvement rules

Two physicians and an adviser reviewing documents at a laptop in a medical office

Practice Acquisition & Sale

A healthcare practice transaction can involve:

Equipment
Accounts receivable
Goodwill
Patient relationships
Restrictive covenants
Purchase-price allocation
Entity interests

Tax consequences can vary substantially depending on how the transaction is structured.

An adviser and a business owner in discussion at a desk covered with charts

Business Advisory

We help owners evaluate:

Provider productivity
Staffing
Collections
Receivables
Overhead
Equipment investments
Cash flow
Expansion
Practice acquisitions

What We Help You Manage

Revenue
Reimbursements
Payroll
Provider Compensation
Equipment
Taxes
Cash Flow
Practice Growth

Frequently Asked Questions

Should my medical practice elect S corporation taxation?

Potentially. Professional-entity rules, profitability, owner compensation, payroll, benefits, and state taxation should all be considered.

How should insurance reimbursements be reconciled?

Accounting should account for amounts billed, contractual adjustments, insurer payments, patient responsibility, write-offs, and actual deposits.

Can medical equipment qualify for accelerated depreciation?

Potentially. Certain qualifying assets may be eligible for Section 179, bonus depreciation, or other depreciation methods.

What should I consider before purchasing a practice?

Consider the transaction structure, equipment, receivables, goodwill, patient relationships, financing, liabilities, and purchase-price allocation.

Why should I monitor accounts receivable?

Growing receivables may indicate collection problems even when reported revenue remains strong.

Can you coordinate my business and personal tax planning?

Yes. For practice owners, coordinating entity-level and individual tax planning can provide a more complete picture.

Services

How we work with healthcare clients

The service lines our clients in this sector call on most.

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Experience Matters in Your Industry.

Work with a CPA firm that understands the accounting, tax, and business considerations unique to your industry.

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