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Volume 15 • Issue 10 • $5.00 April 2019

THE REGION’S MONTHLY NEWSPAPER FOR HEALTHCARE PROFESSIONALS & PHYSICIANS
Excise Tax on Executive

Compensation and Excess

Parachute Payments

BY JOHANNA ORELLANA AND
HAYLEY SHULMAN, CPA

IRC §4960 Background
One of the most substantial changes of the TCJA
affecting tax-exempt organizations was the creation of
IRC §4960. This new code section applies to “applica-
ble tax-exempt organizations (“ATEO”)” and imposed
a new 21% excise tax on excess executive compensa-
Dr. Gilbert Beauperthuy-Rojas tion and excess parachute payments. Francis Afram-Gyening
Organizations subject to IRC §4960 must determine
Coral Gables excess compensation and excess parachute payments Health for the
made to a “covered employee”. A covered employee is
defined as any employee who is one of the ATEO’s five Hayley Shulman
Seeks Advanced highest-compensated employees for the current tax- Homeless
able year or who was a covered employee of the ATEO (or any predecessor) for any
Certification for preceding taxable year beginning after December 31, 2016. Therefore, once an BY BARBARA R. FALLON
employee is a covered employee, they will continue to be a covered employee for all
When academic, tertiary, community or
Orthopedic subsequent taxable years. even rural hospitals think about enhancing

IRS Notice 2019-09 patient care delivery above and beyond
Center of On December 31, 2018, over a year after the release of the TCJA, the IRS released quality of care, they often think in terms of
Notice 2019-09, which provided 92 pages of much anticipated informal guidance the extras. Extras like patient concierge
Excellence Continued on page 29 programs, comfortable furniture, on-
demand scheduling, signage, aquariums
and soothing décor.
BY LOIS THOMSON However, at Camillus Health Concern
(CHC), Inc. a non-profit organization that
Dr. Gilbert Beauperthuy-Rojas wasn't Malpractice Insurance caters to the health and welfare of 5,000
satisfied with just having an Orthopedic homeless and underserved in the South
Center of Excellence established at Coral EXPERT ADVICE Florida area annually, they are targeting
Gables Hospital, and gaining certifica- more basic needs. Needs such as providing
tion in total knee and total hip replace- a woman who lives on the street a safe
ment from the Joint Commission. No; Cyber Security Training for place to shower with soap and a set of
now that that has been accomplished, he clean clothes. This is because before some-
and the hospital administration are one can address health needs, they must
working to gain advanced certification Employees take care of their most basic needs. This is
for the Center. necessary before they can even begin to
The initial certification was awarded in BY TOM MURPHY think of how to alleviate pain from a
2017, but the process was put in motion decaying tooth, soothe the nagging
decades before when Dr. Beauperthuy- When it comes to preventing a data breach or cyber bronchial cough, provide obstetrical care
Rojas first began his practice. He security issue at a medical practice, employers and or treat chronic symptoms of diabetes or
explained, "The background on this was employees should attempt to be as knowledgeable as hypertension.
that I had been doing cases at Coral possible to avoid making errors. This ultimately means Francis Afram-Gyening, CEO since
Gables Hospital for quite some time and that the practice needs a proven cyber security training Spring, 2017 is keenly aware of the impact
had developed a routine with patient program in place to make sure all employees are up to of social determinants of health. He earned
care. I was getting some fairly good date on all security policies at all times. his MPH from Columbia University in
results and satisfaction scores with my Cyber security training for employees of a medical New York City and served in a variety of
patients, so I brought this to the atten- practice is an ongoing process, and early detection of a administrative positions with FQHCs in
tion of the administration and said I data breach or other cyber event is critical when it Cleveland, Memorial Healthcare System
think we should strive to get some recog- comes to preventing a practice from losing thousands Primary Care Centers, Hollywood and
nition for it, and develop some type of of dollars in damages, as well as damage to the practice Tom Murphy Economic Opportunity Family Health
Center of Excellence." reputation and credibility. Practices should consider Center, Miami. He also served as the chair
Administration agreed, and after look- doing more to ensure that all employees are consistently updated and informed about of the Board of Camillus Health Concern
ing at different opportunities, they tar- potential security vulnerabilities and how to recognize and avoid them. and as the president of South Florida
geted the Joint Commission. "They're The following are some cyber security tips for medical practices: Healthcare Executive Forum more than a
well-known throughout the country and
1. Require Strong Passwords. Secure passwords are typically the first step in safe- decade before he returned to Florida in
2017.
Continued on page 20 Continued on page 15
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