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.
Less Medicine, More Surgery
The conventional paradigm for treating neck and back problems is medical treatment (usually drugs), and/or surgery. A recent study found a sharp decrease in medical treatment, but an alarming increase in surgery:
Hospital Admissions (per 100,000 adults) for Medically Treated and Surgically Treated Neck and Back Problems
Medical Treatment | 1982 | 1987 | 1992 |
Ontario | 242.8 | 180.2 | 117.1 |
U.S. | 586.3 | 383.6 | 143.7 |
Surgically Treated
Ontario | 72.1 | 72.4 | 82.3 |
U.S. | 160.5 | 194.1 | 217.2 |
The researchers suggest that "higher admission rates for surgery in the U.S. may reflect a larger supply of surgical specialists and imaging units."
------------------ SOURCE: Lavis JN, Anderson GM, Taylor VM, Deyo RA, Bombardier C, Axcell T, Kreuter W. Trends in hospital use for mechanical neck and back problems in Ontario and the United States: discretionary care in different health care systems. Can Med Assoc J 1998;158:29-36.