December 15, 2014 06:00 ET

CAB CPAs Unique Service to Hospital-Based Physician Practices

NEW YORK, NY--(Marketwired - Dec 15, 2014) - Charles A. Barragato & Co. LLP ("CAB"), CPAs and Trusted Business Advisors, is uniquely qualified to provide services to hospital-based physician practices, commonly known as "Professional Corporations" ("PCs"). Led by partner Angelo Pirozzi, this tax and business-advisory service demands specialized knowledge of physician practice operations, particularly those that are hospital-based.

Says Angelo, "Over the past several years Hospitals have been acquiring physician practices. Some Hospitals, as employers, 'acquire' physicians and make them employees. Others 'acquire' physicians and make them employees of the Hospital-controlled PC. Some PCs are tax-exempt precisely because of the control exerted by the Hospital, while other PCs operate as taxable corporations."

Continues Angelo, "Hospital-based PCs function in a unique environment. Whether they are tax-exempt or taxable, there are special accounting and tax issues that tax-exempt Hospitals must adhere to. For example, there are complex rules regarding private benefit and private inurement which govern exempt Hospital transactions. Exempt Hospitals must constantly weave through these rules when processing transactions between themselves and their controlled PCs."

Mike Breslin, CFO of New York Methodist Hospital in Brooklyn, New York, adds, "Exempt Hospitals such as New York Methodist are particularly aware of the tax rules governing how transactions with PC physicians should be structured. To this end, Angelo and his team at CAB have been an enormous help to us in navigating these rules. They provide advice that balances innovation with compliance, while at the same time ensuring that we are fair and appropriate in how we transact with our physicians."

Finally, Angelo concludes, "The operating environment with hospitals and physicians is extremely fluid. The structures utilized today are not the structures used 5+ years ago, and will likely not be the structures used 5 years from now. Point is, this area of tax law is extremely specialized, so hospitals and physicians are best advised to engage tax specialists who are hyper-focused in this area." 

About CAB

Charles A. Barragato & Co. LLP ("CAB"), CPAs and Trusted Business Advisors, provides tax, accounting and business advisory services across major markets to a diverse clientele, including high net-worth individuals and affluent multi-generational families, real estate investors and developers, exempt organizations and healthcare providers such as hospitals, physicians and the proprietary businesses serving them.

For further information about CAB's full range services, please visit our website or call (212) 371-4446 and ask for Chuck Barragato, managing partner.

Contact Information

  • Contact:
    Chuck Barragato
    Managing Partner
    Phone: 212.371.4446
    Email: Email Contact