For-Profit Providers Must Pay Taxes On Coronavirus Grants, IRS Says
Also in the news: Universal Health Services settles dispute with Massachusetts over improper billing and electronic health record companies team up with Big Tech.
Modern Healthcare:
IRS: For-Profit Providers Have To Pay Taxes On COVID-19 Relief Grants
The IRS clarified that for-profit healthcare providers will have to pay taxes on the grants they received from the COVID-19 Provider Relief Fund. The two laws that set aside $175 billion in grants to help providers cover lost revenue and coronavirus-related expenses didn't explicitly state that the funds would be taxable. However, the IRS issued guidance stating that the grants are taxable income days before a tax filing deadline on July 15. The change means that grants to for-profit healthcare providers including hospitals and independent physician practices will be subject to the 21% corporate tax rate. (Cohrs, 7/13)
Boston Globe:
Universal Health Services To Pay More Than $127M To End Allegations Of Improper Billing
Universal Health Services Inc., the largest US owner of psychiatric hospitals and clinics, has agreed to pay more than $127 million to resolve allegations that it improperly billed government insurance programs in Massachusetts and states around the country. Attorney General Maura Healey said in a statement Monday that the company and two affiliates, including Arbour Counseling Services, will pay $10 million to settle two lawsuits alleging the state’s Medicaid program, known as MassHealth, was charged for services provided by unlicensed and non-independently licensed staff and unqualified psychologists who were not properly supervised, and for medications prescribed by psychiatric nurses who were not properly supervised. (Edelman, 7/13)
Modern Healthcare:
EHR Companies Partnering With Big Tech For Cloud Services
Some of the biggest electronic health record developers are signing new agreements with tech giants as their clients look to shift workloads to the cloud. Cerner Corp., Allscripts Healthcare Solutions and Meditech have announced new or expanded agreements in the past year with the cloud arms of Amazon, Microsoft Corp. and Google, respectively. It's part of an interest in offering new capabilities that draw insights from patient data, experts say. (Cohen, 7/13)
