PD test 6 non lecture

Initial expenses

Open abusiness checking account, business telephone, equipment, first and last month's rent and security deposit, marketing materials logo design, website design, opening promotion package, decorations, office supplies, furniture, music system, CDs, iPod, mp3 player, or satellite stations

Annual expenses

Property insurance, business license, permits, liability insurance, professional association membership, continuing education, legal and accounting fees

Common monthly expenses

Rent, utilities, telephone, bank fees, supplies, networking club dues, education, marketing, internet access, postage, repair and maintenance, business travel, inventory, business loan payments

Options for financing a practice

Personal savings, personal loans, student loans, family and friend loans, private investor loans, bank loans, SBA loans, grants, partnerships, community development corporation investors

Personal loans

own your home you could take out a second mortgage or an equity line loan

SBA Loan

Offers several types of funding from guaranteeing up to 85% of a commercial bank loan to directly loaning money

Bank loan

Amount loan is usually based upon your assets and banks require a complete business plan

Grants

Organizations provide these two people who fall within the parameters of special interest groups, either as the business owner or the market you plan to serve, requires research and proposals

Partnerships

This affiliation can vary from a silent partner more like an investor, to someone who works alongside you to build your business

Crowdfunding

Internet sites that allow you to share your vision and business proposal, and collect contributions from a large number of people

Community development corporation CDC investors

Local organizations that partner with government, business owners and community leaders to provide economic assistance (IE loans, grants, consulting, subsidized office space) usually geared towards specific populations or the enhancements of a particular area of the city

Sole proprietor disadvantages

Unlimited liability, can't bring in new owners or outside capital, can't defer tax by retaining profits

Sole proprietor advantages

Minimum legal restrictions, easy to discontinue

Partnership disadvantages

Hard to get out of, general partners are liable for actions of others

Partnership advantages

A good way to combine skills or finances of different people

LLC disadvantages

Inconsistent treatment state to state, relatively new entity with little regulatory case law to follow

LLC advantages

Easier to form, choice of designation, less paperwork

Sole proprietor tax forms

Schedule C, form 1040, pub 334

Partnership tax forms

Form 1065, PUB 541

LLC tax forms

Forum 1065, PUB 3402

Hybrid

LLC is a_____ of a partnership and a corporation

Employer identification number

As a sole proprietor you don't need an______ _______ ______ unless you have employees or a retirement plan.

Laws and regulations

Professional regulations that relate to you being a wellness practitioner, and the local comma state, county, and federal requirements that apply to starting or relocating a business

True

A massage therapist professional license to practice is separate from a business license to operate your practice in a specific city

Business license

Allows you the privilege of doing business

Occupational license

Allows you to work in a specific industry as long as you comply with that professions regulations

Transaction privilege tax license

Allows you to collect and remit sales tax

Planng and zoning permits

Issued after your location has been assessed and shows that the business operation conforms with area plans, has proper zoning, and has adequate parking. Certificate of occupancy is an example

Building safety permit

Issued after your location is inspected and has met the minimum safety requirements, and complies with fire and building codes

Liability insurance

Covers costs of injuries that occur to business-related visitors on your property, doesn't cover you or your employees

General liability insurance

Covers negligence resulting in injury to clients, employees, or the general public while you're on their premises, important if you do office calls or teach classes

Malpractice liability insurance

Protects you from claims due to a loss incurred by your clients as a result of negligence or failure on your part to perform at a professional skill level

Small business insurance

Offers umbrella coverage for business losses in terms of general liability, business interruption, errors and omissions, and product liability

Product liability

Protects you from claims by clients who use products designed, manufactured, or sold by you. Wellness providers rarely need this coverage, as the product manufacturers should carry the insurance

Automobile insurance

Make sure you have the correct policy if you use your car in your business, be sure to carry full coverage including disability, business interruption, and loss or damage to business related items

Fire and theft insurance

Covers business equipment, furniture, supplies, and documents, if you do not work out of your home you need to purchase

Business interruption insurance

Pays you approximately what you would have earned if your business closes due to fire or other insurable causes

Permitted incidental occupancies - residents premises

Delete the liability exclusions for business activities conducted on the main residence premises and modifies the business personal property special limit, doesn't cover professional liability

Personal disability insurance

Safeguards you from loss of income if you cannot work due to illness or injury, you receive a certain monthly amount if your permanently disabled or a portion of you is partially disabled

Medical health insurance

Helps cover medical bills, particularly for a complicated illnesses, injuries, and hospitalizations. AMBP has group rates

Workers compensation insurance

Required by law if you have employees, covers all of the costs that you as an employer would be required to pay for any injury to an employee, also provides the employee with disability and death benefits if injured or killed on the job

Partnership insurance

Protects you against lawsuits or rising from actions or omissions by any of your business partners

Four major fee setting strategies

High end rate

Industry standard rate

Low end rate

Time limited introductory rate

High end rate

Set rate significantly higher than industry standard rate to target a small percentage of the population, usually only works if you are service is innovative, in demand, and has no competition

Industry standard rate

Determine the industry standard rate in a line with it

Low end rate

Set rate significantly lower than the industry standard rate to attract a larger market share

Time limited introductory rate

Offer introductory rates for a limited time or package deals reflecting reduced rates, beware of the tendency to overextend introductory rates

Ambience

A special atmosphere created by your environment, impacts your image in the mood you set

Professionalism

Credibility and demonstrate concern for your client you validate your credibility by conspicuously posting your business license, policies, educational certificates, awards, interview clippings, business cards, brochures, and letters of appreciation and recommendations

True

Engaging multiple senses subconsciously links your clients experience to you in your services

Touch, sight, smell, sound

Incorporate as many of these senses as possible into your design plans….

Impact on your clients

One of the most critical factors to consider in choosing a new location for your business is the potential…..

Communicating the benefits

Retain clients and n foster goodwill by taking the time to _____ ____ _____ of relocating to your clients

Revitalize your practice

Use relocating your business to reconnect with your clients to ______ ___ _______.

Notification

Send out email announcements, postcards or flyers at least 3 weeks before the move.

Chamber of commerce

Ask the_____ __ _______ to send you a relocation packet with information on the city, population, demographics and major industries.

Chamber of commerce

Also request that the____ ___ _____ send you any directory listings on your specific service, health services, stress reduction, and holistic wellness providers, listings of businesses and professional associations.

HIPAA (health insurance portability and accountability act)

Intended to protect the privacy of health care consumers and establishes compliance rules for healthcare providers

Inappropriate

Protect and enhance the rights of consumers by providing them access to their health information in controlling the ________ use of that information

Delivery of care

Improve the quality of healthcare in the United States by restoring trust in the healthcare system among consumers healthcare professionals and the multitude of organizations and individuals committed to the _____ __ ____

Organizations

Improve the efficiency and effectiveness of health care delivery by creating a national framework for health privacy protection that builds on efforts by states health systems individual _______ and individuals

Four facets of HIPAA

Electronic health transaction standards

Unique identifiers for providers, employers, health plans, and clients

Security of health information and electronic signature standards

Privacy and confidentiality

Electronic health transactions standards

When billing insurance, practitioners are required to use the standard code sets of the international classification of disease (ICD-10) codes and the current procedural terminology (CPT) codes

Unique identifiers for providers, employers, health plans, and clients

Each practitioner who transmits information electronically is assigned a national provider identifier (NPI)

Security of health information and electronic signature standards

All practitioners must provide uniform levels of protection of all health information that is stored or transmitted electronically, this includes your computer, along with any faxes and emails sent.

Electronic

An _____ signature is required for all HIPAA transactions

Privacy and confidentiality

Limits the non-conceptual use and release of private health information; gives clients new rights to access their medical records and to know who else has accessed them; restricts most disclosure of health information to the minimum needed for the intended person; institutes criminal and civil sanctions for improper use or disclosure; and establishes new requirements for access to records by researchers and others

Protected health information (PHI)

The current emphasis of HIPAA compliance centers on electronic transmission of a clients……

Business associate

According to HIPAA regulations is defined as a person or entity that performs certain functions or activities that involve the use or disclosure of protected health information on behalf of or provides services to a covered entity.

Insurance reimbursement

If you work with_____ ______ It is wise to immediately follow the HIPAA compliance guidelines

Mandatory

If you're a covered entity HIPAA compliance is_____

Three main types of insurance claims

Motor vehicle collisions - MVC's

Workers' compensation AKA Labor and industries or L&I

Private health insurance companies such as an HMO or a PPO

Workers compensation

Form of insurance that provides wage replacement, medical benefits, and compensation for permanent physical impairments to employees injured in the course of employment

Personal injury claims

Claims made when an injury occurs in a automobile, at home, in a business space, or in a space that is covered by some sort of liability insurance

Third party insurance claims

Insurance reimbursement is a bit erratic, a lot seems to depend upon the unique perspective of the claims adjuster as well as the policies of the specific insurance company

Financial responsibility

Having client sign a contract that clearly communicates that even with insurance a client is ultimately responsible for any unpaid balance for sessions

Potential advantages of accepting insurance reimbursement

Higher fees and an increased number of clients sessions

Disadvantages of accepting insurance reimbursement

Paperwork, possible regimentation, the potential of not receiving compensation for your work, and the time leg between provided service and payment

Fee for service

General health insurance coverage offered by an employer to an individual or a group

Personal injury insurance

Covers a multitude of situations, means that someone was injured in an automobile accident or during a slip and fall accident

No fault insurance

Referred to as personal injury protection, means is that in no fault states, if one is injured the injured party can obtain medical treatment and have the bills submitted to her own insurance company for remittance regardless of who is at fault

Personal injury protection/med-pay

Refers to medical payment for motor vehicle collisions, additional coverage a person can purchase when first purchasing or renewing an auto insurance policy, above and beyond the usual $10,000 coverage that is on a no-fault policy

Uninsured motorist

If an uninsured driver injured the party, the injured party must have previously purchased uninsured motorist protection on her policy to be covered for the injury the uninsured person caused

Medicare

A federal program that provides health benefits for those 65 years of age or over, and for those under 65 who are permanently disabled

Medicaid

Medical coverage for those unable to pay for medical services because of financial hardship, run by both state and federal government, federal government covers 55% in the state paying the remainder

Personal provider organization (PPO)

Contracts with a group of preferred providers to deliver health care to members usually requires filing claims in paying deductibles and copayments, free to choose any physician or hospital for services but they receive more benefits or pay less of the cost themselves if they choose a preferred provider

Health maintenance organization - HMO

Provide health care services for a fixed fee to subscribers in a specific geographic location, usually cover preventive services with little or no out of pocket expense, must use physicians and facilities authorized by the HMO

wellness

HMO typically does not reimburse complementary_____ providers unless it's written in the state law

Managed care organization - MCO

Entities that manage costs by contracting with providers who agree to charge predetermined fees, administered by a gatekeeper; a physician who oversees the services supplied by the organization, all providers must be contracted and approved prior to providing services to the patient

Procedure

The main service you provide, such as massage therapy

Modality

An adjunct to that procedure, based on the device used (IE ultrasound) and can only be used one time per session, regardless if used for more than 15 minutes

ICD-10-CM

Diagnostics codes for licensed healthcare providers are listed in an ______ code book

CPT codes

Indicate the type of services performed during the session to improve function, codes are defined and maintained by the American medical association

5 yrs

How long do I need to keep my general correspondence for business records

7 yrs

How long do I need to keep my bank business statements, receipts and canceled checks

Indefinitely

How long do I need to keep my business records for here in financial statements, contracts, licenses and permits, insurance claims, tax returns

Business space, home

The percentage of business use of a home is determined by dividing the square feet of the _____ _____ by the total square feet of the_____.

Assets

Total resources of the business

Capital

Net worth of the business, the difference between the assets and the liabilities

Accounts receivable

Amounts owed to you by another person or business