The ERC for healthcare organizations
Your healthcare business may qualify for a significant refund through the Employee Retention Credit (ERC), even if it received PPP loans.
Determine Eligibility
The impact of the pandemic on healthcare employers
The pandemic posed unique challenges to the healthcare sector. Nearly every state government-mandated healthcare facility was forced to temporarily stop or suspend elective surgeries and treatments.
The financial impact estimated by The American Hospital Association.
The average loss in revenue per month for America’s hospitals and healthcare systems.
of individuals stated they had canceled upcoming appointments according to a recent survey.
By claiming the ERC, eligible businesses have the opportunity to receive a substantial refund. This refund can be a significant boost for those that retained their employees on payroll during 2020 and 2021.
What is the ERC?
As you’re well aware, the pandemic put extreme stress on the healthcare system in the United States with added workforce shortages, burnout, exhaustion, and trauma.
In addition, some facilities were closed and many Americans put off elective procedures, outpatient visits and routine care – which resulted in reduced revenue for healthcare practices in many sectors.
However, your healthcare organization may be able to find reimbursement through the ERC, even if you received PPP loans. This government program was developed to encourage and support employers who retained existing employees throughout 2020 and the first three quarters of 2021 by offering a payroll tax refund through the IRS.
Success stories from businesses in the healthcare industry
IR was great to work with and a great help in our organization getting our refund in a timely fashion. Drew Falco walked me through the process and made sure all of our questions were answered and any issues resolved. Would recommend using IR to get your refund.
DRS Health Group
I have to say that their strong communication to know what (and when) to expect each step of the way was exactly how our experience was. There were no surprises and we were very pleased with the refund we were entitled to. Their estimate was exactly what we received.
Dr. Paul B. Lang, MD
What I really liked about the process was how well they communicated along the way. They are very professional and knowledgeable. This program will return the capital lost due to the pandemic and will give our company a chance to thrive again.
Friendship Health Center
Our team of independent tax professionals works for you, with no upfront fee
Our independent tax attorneys have extensive knowledge of ERC qualifications and IRS tax code to help eligible healthcare and social assistance companies claim their refund.
How was your healthcare organization affected?
COVID was challenging for everyone. But especially healthcare practices – including dental practices, nursing homes, plastic surgery centers, hospital-affiliated organizations, and the social assistance industry.
To qualify for the ERC, a company must have experienced financial loss, disruptions to their business, or government restrictions.
Did your healthcare company experience these challenges?
Reduced capacity requirements
Capacity restrictions to your waiting rooms
Mandatory cleaning procedures that decreased business operations
Prevented from performing elective surgeries
Decrease in hours of operation
Interruption due to supply chains
If you answered ‘Yes’ to any of these, your healthcare facility may be eligible for the ERC.
How can healthcare businesses use the ERC refund?
If your healthcare business qualifies for the ERC, there are many ways to put the payroll fund to good use – including things like paying debts, hiring or retaining employees, and growing your business.
In the healthcare business, that might mean:
Allocate to labor costs
Financial relief due to significant revenue decline
Eliminating debt
Boosting cash revenues
Purchasing new medical equipment
ERC qualifications for the healthcare industry
The healthcare industry is the second-largest industry experiencing large negative effects from the pandemic.
Here’s how we’ve helped thousands of eligible businesses, including those in healthcare and social assistance, file for the ERC:
1
Qualifying them for government shutdown orders
2
Determining eligibility under limited commerce
3
Outlining COVID’s impact beyond reduced revenue
With the ERC, qualifying companies could receive a refund to help cover rising training costs, offer competitive employment incentives, and expand services.
It's easy to get started and see if you are eligible for the ERC
The truth is, many businesses in the healthcare industry have not yet taken advantage of the ERC. Based on a survey we conducted, around 90% of firms had yet to claim their ERC, and 64% hadn’t even heard of it.
Why is this? Originally, ERC was not accessible for businesses that participated in PPP funding. This means that many employers took out PPP loans in 2020 but skipped the ERC.
