Beginning in 2011, credits will be available to physicians for implementing electronic health records (EHR). An estimated $27 billion in federal incentives and bonuses will be available to doctors who comply and meet the “meaningful use” requirements. These requirements, as set forth by The Centers for Medicare and Medicaid Services, entail specific mandates such as recording 50 percent of lab results and fulfilling 80 percent of patient requests for health information electronically by the end of 2012.
Physicians must have the system installed and operating in 2011 in order to demonstrate the required “meaningful use.”
HLB Gross Collins, P.C. services many medical providers and we encourage you to be proactive in getting this implemented in order to take advantage of these credits. Now more than ever, it is important that health care providers maximize their tax savings and ensure proper planning to take advantage of possible credits. Many practices can potentially benefit from both the federal incentive and the Georgia Retraining Tax credit which would be a greatly beneficial tax saving opportunity.
The type of business entity will also play a role in how practitioners can benefit from these incentives. In some cases, converting from a C Corporation to an S Corporation may allow the former C Corp to benefit from the state tax credits in the future.
Understanding how these credits work and taking the right steps to ensure that you get your share is a critical element of tax planning.