Paying For Your EMR Software
Paying for Your Electronic Medical Records Just Got Easier.
Certified EHR Software + Deduct purchase with 2011 Tax Section 179 + Federal EMR Stimulus = An EMR that will save you money and time.
Many medical practices that elect a Client/Server EMR Software model choose to finance their electronic medical records software and hardware investment over a 1-5 year period. EMR financing and leasing options are available to ensure that your electronic medical records system is an affordable and cost-effective replacement of your paper charts. With a web-based EMR setup, the initial investment is reduced - enabling you to get started without a substantial capital investment.
With a lower capital investment (through the ASP/web-based model, or by obtaining a equipment loan) - you can spread payments out over time. Using Section 179, medical practices can realize huge tax savings in addition to qualifying for the federal EMR software stimulus if they purchase and begin implementation of their EMR software in 2011.
Step 1. Purchase a Certified EMR like PrimeSuite.
The federal EHR stimulus signed into law on 2/17/09 calls for up to $63,750 per provider in Medicare/Medicaid reimbursement bonuses for providers who are 'meaningfully using' an electronic health record system that is certified by an ONC-Authorized Testing and Certification Body (ONC-ATCB) and reported to ONC.
Read more about the EMR Software Stimulus.
Step 2. If necessary, obtain financing to cover the initial software and training expenses.
Even if you obtain a loan for your electronic medical records system using an Equipment Finance Agreement (EFA), you can still take the Section 179 deduction.
How Does Tax Code Section 179 Apply to Our Practice?
- SIGNIFICANTLY! The 'Tax Relief Act of 2010' signed 12/17/2010, extends Section 179 Deduction as well as expands Bonus Depreciation thru the 2011 tax year. Section 179 limits were increased by the ‘Jobs Act of 2010’ on 09/27/2010 – allowing businesses to write-off up to $500,000 of qualified capital expenditures subject to a dollar-for-dollar phase-out once these expenditures exceed $2 million. Read more on this deduction by visiting http://www.section179.org.
Examples of Cost Savings Under Section 179
- Example 1
- Purchase Price: $150,000
- Write Off Amount? The FULL $150,000.
- Example 2
- Purchase Price: $300,000
- Write Off Amount? $250,000
Step 3. Plan to purchase and implement your EMR in early 2011.
In order to qualify for the highest incentives through the federal EHR software stimulus package, your practice must be able to substantiate that it is 'meaningfully using' an EHR system that has been certified by an ONC-Authorized Testing and Certification Body (ONC-ATCB). Because of the backlog in EMR implementations even today, experts are advising that practices DON'T delay purchase and implementation. Doing so might mean that you lose out on the first payments that have already started in 2011. Under the federal stimulus package, 2015 is the deadline to implement a certified EHR system to avoid facing additional reimbursement cuts.
DISCLAIMER
To the extent that this website provides tax advice or information, such information is not intended to be used and may not be used for the purposes of avoiding federal taxes. The information on this site is to be used solely for informational and illustration purposes. MDS does not advise on tax issues, and all tax questions must be directed to a certified professional. Before making purchasing decisions based on the tax information provided here, please contact your tax advisor. In addition, MDS has no claim or stake in the financing process through ACI Financial and makes no warranties or representations regarding the terms or conditions of any financing extended to users of this site.
