Being proactive vs. reactive with tax planning will have a tremendous impact on profitability and long-term wealth creation. Keep in mind, I am not a CPA and I am not giving tax advice. Rather, I’m passing on information that I learned as a practice owner and now implement in my financial planning practice. While not an exhaustive list, here are a few items to contemplate in 2025 as you watch the dollars in your practice.
Complete Wellness Centers under Federal Investigation
On November 18, 1997, an interdepartmental team of federal investigation officers seized truckloads of patient billing records, computers and other materials. The warrants and grand jury subpoenas sought information "to include but not limited to CHAMPUS, Medicare, Federal Employees Health Benefits Program (FEHBP), Medicaid and Blue Cross/Blue Shield of Virginia."
Complete Wellness currently operates some 69 centers that provide multidisciplinary care utilizing both physicians and chiropractors. The centers are based on a model where the chiropractor hires a medical doctor as an employee, along with an acupuncturist, physical therapist and/or massage therapist.
Complete Wellness issued a press release on November 19th stating that:
"We are surprised by the actions of the government inasmuch as the company does very little business with the various federal health benefit programs mentioned in the warrants and does very little billing for its affiliated clinics. Management is unaware of any billing improprieties. The company intends to cooperate fully with the investigative agencies involved and to resolve whatever issues may be presented."
Complete Wellness expects to continue business as usual while under investigation.