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.
Over $300 Million in Chiropractic Medicare Services
At the end of 1996, after years of ignoring the chiropractic profession, the CPT (Current Procedural Terminology) code book finally included chiropractic manipulation treatment (CMT) codes. The concern at that time was what the reimburse rate would be for doctors of chiropractic under the new coding system (see "CPT Includes Chiropractic" in the November 18, 1996 issue).
Now a report has just been released by the Health Care Financing Administration (HCFA) on the figures for chiropractic use by Medicare under the new CMT codes:
Code
98940 - Spinal CMT of one or two regions98941 - Spinal CMT of three or four regions
98942 - Spinal CMT of five regions
Chiropractors provided over 99 percent of the CMT in 1997. The average reimbursement rate is $25.52 per service, with an average of over $5,000 of Medicare reimbursement per U.S. chiropractor.
While these numbers are promising, they also provide us with a bench mark. We can now measure if DCs will continue to develop their relationships with Medicare patients. Will we see a growth in the Medicare patient base in 1998? The numbers will tell.