I loved doing my taxes this year. You know why? Because I didn’t do them at all – my accountant did. Yep, I stopped by her office during my lunch break with some paperwork. And despite a number of actions in my financial life this year, she had my taxes wrapped up in less than 30 minutes—time enough for me to have lunch.
Even better, using her knowledge of the tax code changes she got me an unexpected return this year that was sizable.
According to Medical Economics, less than 8% of healthcare providers do their own taxes.
Why is that? I know why I don’t – it’s a huge pain in the caboose! Who can keep up with all the changes each year? Well, the consensus is that healthcare providers outsource their taxes for three main reasons:
- They feel a specialist can improve the amount of their return
- It’s a big headache
- It frees them up to focus on higher value activities
Ironically, these are the primary reasons that healthcare organizations outsource their Revenue Cycle Management, as well.
Outsourcing frees us up to focus on our core competencies and our highest value activities. What hope do I have of doing my more than full-time job and keeping up with the latest tax code? Or, of producing as good a return as my accountant who specializes in that all year round?
With daily payer coding changes, transition to ICD-10, and massive regulatory changes like the Patient Protection and Affordable Care Act, it’s pretty challenging to focus on strategic initiatives like achieving Meaningful Use 2 or higher value activities (like just being with my family, for example).
So, while my accountant might take issue, I’d argue that it is at least as complex as the tax code.
What is your core competency? Next time you are feeling overwhelmed you might take solace in outsourcing your non-core activities. You might enjoy your lunch better afterwards, like I did.