July 2009

Searching for Leasing Opportunities
Several years of energetic expansion coupled with a drop in demand have softened the market for medical office rentals in many areas. Depending on your situation, that could mean new opportunities for your practice to save money in the short term and, potentially, lock in long-term savings. Even if your lease isn’t expiring soon, you may be able to realize some unexpected savings by negotiating with your current landlord. Begin by checking current rental rates for comparable properties in your current location. Then, let your landlord know that you’d like to discuss your lease. If your landlord’s vacancy rate is high, that may be to your advantage. Read more...

Medical Briefs
Tax Incentives Extended - The American Recovery and Reinvestment Act of 2009 has extended two tax incentives that may be helpful if your practice acquires new equipment. Both the 50% bonus first-year depreciation deduction and the enhanced Section 179 expensing limit generally remain in effect for 2009. Read more...

Somerset Hosts Seminar/Webinar to Discuss Recovery Audit
Contractors (RACs) on August 13
The Somerset Health Care Team invites you to our next Health Care Roundtable session on Thursday, August 13, 2009, from 11:30 a.m. to 1:00 p.m. EST in the Somerset Conference Center. Cathy Weaver of Somerset CPAs and Joy Newby of Newby Consulting, Inc., will be discussing RACs. Linda Batten of Kroger, Gardis & Regas will discuss compliance plans in light of RACs. Please join us to meet with fellow health care leaders and industry experts to discuss these important topics that impact your bottom line. Register to attend in-person or participate via webinar.

Somerset and Krieg DeVault to Co-Sponsor Indiana Orthopaedics Roundtable on August 20
This event for Indiana orthopaedic groups will be held at the Marriott Indianapolis North from
8:00 a.m. to 1:00 p.m. EST on August 20, 2009, and will include presentations on the topics of Possible Organization of the Indiana Association of Orthopaedic Executives, Risk Purchasing Groups and Captive Insurance Companies, Financial Markets and Current Orthopaedic Strategies and Joint Ventures After Stark 4. More details and registration...

Somerset and Squire Sanders & Dempsey Host Hospital/Physician Acquisition & Employment Strategies Conference in Cincinnati on August 27
Economic and health policy issues are driving hospitals and physicians toward a more integrative system of care delivery, including employment. On Thursday, August 27, 2009, Nicole Webb of Squire Sanders and Jim Hamilton of the Somerset Health Care Team will present a conference to address hospital/physician acquisition and employment strategies. Learn from these industry experts the facts that both hospital executives and physicians need to know about these types of transactions--from governance, autonomy and compensation to the legal implications of hospitals and doctors coming together. More details and registration...

Somerset Orthopaedic Practice and ASC Benchmarking System
The Somerset Orthopaedic Practice Survey provides valuable interactive, online benchmarking tools for the practices, including data on the following: financial information for the core physician medical practice, financial information for in-office ancillary services (MRI, PT/OT, DME, etc.), accounts receivable and payer mix information, physician compensation (including RVUw data), NP/PA compensation, head and FTE counts for employees and recruitment data. The Somerset Orthopaedic ASC Survey provides valuable interactive, online benchmarking tools for the ASCs, including data on the following: financial information for surgical cases, financial information for pain procedures, accounts receivable and payer mix information, head and FTE counts for employees and square footage data. Survey responses are compiled and analyzed by the accountants in Somerset's Health Care Team and represent reliable and valuable information. Please contact us for a demonstration and more information about participating.

Recent Developments

Medicare Releases Proposed 2010 ASC Payment Rates - On July 1, 2009, the Ohio ASC Association reported that CMS released its proposed 2010 Medicare ASC payment rates and policies. According to initial reviews, CMS is proposing an annual inflation update of 0.6% (based on CPI-U) and is again not proposing to require ASC quality reporting in 2010.  More details will be coming in future days once a thorough review can be completed. The OAASC as a part of the national ASC coalition will be submitting comments on the proposed rates, especially the linking of ASC rate increases to CPI-U as opposed to the "health care market basket" like other providers. Click here to view the CMS proposal.

Proposed Rule Eliminates Consults - CMS is also proposing to stop making payment for consultation codes, which are typically billed by specialists and are paid at a higher rate than equivalent evaluation and management (E/M) services. Practitioners will use existing E/M service codes when providing these services instead. Resulting savings would be redistributed to increase payments for the existing E/M services.

CMS Releases 2010 Proposed Physician Fee Schedule - The Centers for Medicare & Medicaid Services (CMS) released the 2010 Medicare proposed physician fee schedule earlier this month with a related press release and fact sheet. The regulation includes provisions that confirm a 21.5 percent reduction in 2010 Medicare physician payments unless Congress enacts legislation to reverse this cut. As a news item from the Medical Group Management Association (MGMA), the regulation also proposes to “remove physician-administered drugs from the definition of “physician services” for purposes of computing the physician update formula in anticipation of enactment of legislation to provide fundamental reforms to Medicare physician payments,” which has long been advocated by MGMA.   

Somerset Health Care Team News

170 People to Know in the ASC Industry - Steve Dobias was recently named one of the "People to Know in the ASC Industry" by Becker's ASC Review. Click here for the full article. Steve received this honor in 2008 as well.

Western Orthopaedic Association - Mike McCaslin will be presenting on the topics of Overhead Management, Operational Revenue Enhancement, Group Practice Merger and Health Systems & Orthopaedics at the Western Orthopaedic Association conference in Seattle, Washington from July 29 to August 1, 2009.

American Academy of Orthopedic Surgeons (AAOS) - From October 2 to 4, 2009, Mike McCaslin will be at the AAOS 4th Annual Practice Management Course in Albuquerque, New Mexico speaking on the topics of Ancillary Revenue Streams and Mergers & Acquisitions.

2009 Indiana Medical Group Management Association (IMGMA) Salary and Benefits Survey - Somerset recently completed the compilation of the participant data for the 2009 IMGMA survey. This year's survey results are based on medical group practice salary and benefits data as provided by 102 participating IMGMA members. Participants will receive the report in about a week. If you have any questions concerning this report, please contact Kathy Rokita.
 

Somerset Client Satisfaction Survey - If you are a Somerset client, please take our survey concerning the services we have provided to you. Our goal is to improve our overall relationship and better serve you. Go to survey.

Health Care Commentaries is provided by Somerset’s Health Care Team for our clients and other interested persons upon request. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review. For additional information on the issues discussed, please contact a member of our Health Care Team. This document is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer.