Technology continues to change how therapists provide care. In fact, therapists often are helping guide or lead the technology development for neurorehabilitation and physical rehabilitation. Some therapy practices may be hesitant to purchase technology because of the price tag and the uncertainty how it will enhance patient outcomes and the overall business . But now is a great time for US-based companies to take the leap and become one of the successful practices that is fully engaged with rehabilitation technology.
Evidence-based studies of rehabilitation technologies show time and again the advantages for patients who have experienced stroke and other neurological conditions, spine issues, upper- and lower-extremity injuries, amputation and more. Having leading-edge measurement tools and equipment can also be a differentiator for a practice that ultimately leads to more referrals. It also can help measure data-driven outcomes that may gain approval from the insurance company for more therapy visits. Having that technology in your clinic also can help transition patients to cash pay clients.
With technologies such as virtual reality, robotics, balance evaluation systems and body weight systems, it becomes important to evaluate the value of purchasing technology for the patient base of each practice. The next step after purchase it to be thoroughly trained in how to use and market the technology for the biggest gains.
Undoubtedly, technology is a big investment for any practice but there is tax help to ease the pinch for American companies. The IRS offers the Section 179 deduction, which in 2016 allows businesses to deduct up to $500,000 of qualifying equipment purchased or financed during the tax year. You can take depreciation now instead of over the life of the equipment.
It is an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves.
For US-based clinics, The the Section 179 Deduction qualifications noted below are based on the equipment spend level, but to qualify the equipment must be placed in service the same year as the purchase/lease.
- Businesses that purchase or finance less than $2 million in business equipment during the tax year (January 1 through December 31) should qualify.
- These businesses may write off up to $500,000 in 2016.
- Businesses may not write off more than their taxable income.
- The equipment does not have to be new – just new to the practice.
See Savings Now
For example, if a private practice clinic were to purchases an AlterG® Anti-Gravity Treadmill® and puts it in use by the end of the year, you may see an approximate $12,91535% in tax savings. Look at it another way – you will cut approximately 35% off the price of the AlterG. How much you can write off depends on your tax bracket.
Section 179 may help you take some guess work out of your year-end tax planning. Consult your tax advisor to learn more about the specific impact to your business and visit www.irs.gov.
Technology is imperative for any modern therapy practice’s success, so make it a priority to take advantage of the Section 179 Deduction by having your new equipment in use by December 31.
For more information about ordering an AlterG through customizable finance programs, call 510-270-5900 or email firstname.lastname@example.org.