COVID-19 has affected businesses of all kinds. We’ve heard many questions about how to keep cash flow going and resources available for help. For medical practices, however, there are unique concerns regarding equipment, safety while treating patients, and adequate staffing.
While every practice has different needs, we’ve compiled the suggestions and resources that are most universally helpful for you.
Management of Physician Compensation, Overhead and Cash Flow
Patients need you now more than ever. Thankfully, there are steps you can take to help your practice stay afloat.
- Reducing physician draws by certain percentage or amount
- Foregoing a physician payroll (or multiple) all together
- Foregoing bonuses until year end
- Asking essential salaried staff to take a reduction of their salaries for the time being
- Reducing hourly staff hours (depending on the reduction, they could be eligible for unemployment benefits)
- Laying off nonessential employees and having them apply for unemployment benefits
- Consolidating offices and closing nonessential offices
- Increasing bank lines of credit and drawing on them as needed (we recommend contacting your bank and requesting an increase and an extension in your borrowing limits)
- Extend the payment of employer contributions to your 401(k), profit sharing or other employee benefit plans until the extended due date, assuming you have or will extend your business income tax return
From loans to tax breaks, there are several options available. The Florida Small Business Emergency Bridge Loan program has short-term loans with 0% interest for businesses experiencing economic damage as a result of COVID-19.
Meanwhile, the U.S. Small Business Administration is providing loans with 3.75% interest for small businesses.
The IRS has made tax credits available for paid leave should your employees need to take time off to care for themselves or family members. (You can also read our article about the Families First Coronavirus Response Act detailing these credits and the leave policies.)
Your patients aren’t the only ones in need; your employees are also facing precarious times. If you have to lay off staff members, here are some links regarding unemployment insurance claims:
Call for Personal Protective Equipment (PPE)
Please notify other clinics or us if you close and you have PPE that is needed by open clinics fighting the front lines of the COVID-19. Personal protective equipment may include items such as gloves, safety glasses and shoes, earplugs or muffs, hard hats, respirators, or coveralls, vests and full body suits.
Our Healthcare Services team is here to help with cash savings strategies or assisting you and your employees find available programs. We will continue to be your resource and ally during this increasingly difficult and unprecedented time. Please stay healthy and safe.
All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.