In November of 2023, the New York State Department of Financial Services (NYDFS) amended 23 NYCRR Part 500, otherwise known as the Cybersecurity Regulation. While the rule is aimed predominately at the banking and insurance industries, many organizations outside the realm of banking and insurance will still be required to adhere to the rule. Before we get into the changes, let’s discuss what the Cybersecurity Regulation aims to accomplish ..read more

Cash posting procedures can ensure stronger cash flow for healthcare organizations ‘Cash Posting’ in medical billing is the process of recording payments received from patients, insurance companies, and other entities into the healthcare provider's billing system. It involves applying the payments to the correct patient accounts and ensuring that the financial records are accurate and up-to-date, as well as providing an accurate snapshot of the practice’s current cash flow ..read more

Planning an exit strategy from your successful company can be difficult at times. Though options abound, one that many companies fail to consider is an Employee-Owned Stock Ownership Plan, or ESOP. This type of plan can have outstanding benefits for both employees and owners. With about 6,500 ESOPs in the United States covering 14 million employees, ESOPs work well for small to midsize companies that have under 250 employees and sales averaging $20 million-$50 million annually. What Are ESOPs? Much like a 401(k) or profit-sharing plan, ESOPs are considered a tax-qualified retirement plan subj ..read more

Implementing a denials management strategy, leveraging data, and mitigating operations The complexities of medical billing can be burdensome to healthcare providers. Despite all the time and attention given to documentation, coding and billing, the factors that contribute to denials exacerbate the frustrations of physicians, practices, hospitals, and other providers. Our first article in this two-part series on denial management addressed the financial impact of denials and the need for operational mitigation. This second article discusses creating a strategy and using analytics to mitigate d ..read more

Understand the nuances of financial reviews It’s common knowledge in the not-for-profit (NFP) world that Section 501(c)(3) of the Internal Revenue Code (IRC) establishes that a not-for-profit organization that meets certain criteria is recognized by the IRS as having tax-exempt status. As a result, the organization is precluded from paying tax at the federal, state, or local level on any net income or profit.  Not-for-profit organizations must keep detailed records of their activities to preserve their tax-exempt status and meet other requirements. Financial reviews can he ..read more

Fiduciaries for employee benefit plans (EBPs) have a challenging job. Staying on top of regulatory changes is a critically important part of that job. Congress, the U.S. Department of Labor (DOL) and other government entities constantly amend, adjust and repeal legal and regulatory requirements. This article discusses some of the most important changes that are likely to affect EBP fiduciaries in 2024. Changes to Form 5500 Form 5500 is a collaborative project by the DOL, the IRS and the Pension Benefit Guaranty Corporation (PBGC). It provides a single document the EBPs can use for the reporti ..read more

Effective methods to allocate costs for informed decision-making A significant challenge facing many not-for-profit (NFP) organizations involves determining how much of their resources and expenses to allocate to their services, programs, and initiatives. Not-for-profits do not necessarily see returns on investment in the same way as for-profit businesses so they must find other means for tracking the sustainability of their operations. Cost allocation is a method of categorizing expenses to better understand where an organization’s resources are being utilized. It can be straightforward when ..read more

Not-for-profits can, and must, keep up with advancing technology When thinking of technological innovation, the not-for-profit sector is not likely to be one of the first places that come to mind. Not-for-profits serve important missions, but they often do so with limited resources. Fortunately, many innovations can significantly improve not-for-profit organizations’ operations and support their missions at reasonable costs. So how can you identify and leverage new technologies? Frugal Technology Upgrades for Nonprofits Cost is a factor for many not-for-profit organizations when purchasi ..read more

The cyber-attack on Change Healthcare has severely impacted healthcare providers' financial operations, disrupting claims processing, billing, and prescription services, and putting patient care at risk. With services interrupted, providers face financial strain and have an urgent need for relief. Short-term aid could include advances and government support while potential long-term strategies could involve business interruption claims and litigation. Regardless of the source of relief, it is critical that providers act now to maintain complete, accurate and contemporaneously documented data ..read more

New Update: Understanding Your Letter 6612. The IRS escalated its verification efforts for Employee Retention Credit (ERC) claims. Businesses that submitted ERC claims are now under even closer scrutiny and are being asked to quickly submit detailed documentation to prove that they were rightfully entitled to the credit. Issuance of Letter 6612 marks the start of an IRS audit into your organization’s tax filings, specifically items related to ERC claim verification. The IRS will place ERC claim refunds on hold until they get the results of this audit. The IRS’s request spans a range of inform ..read more