Medical practices, hospitals, and pharma companies face unique regulatory and financial challenges. Here's how we help you navigate them.
DPCO compliance, NLEM drug pricing, maintaining price approval records, and managing trade margin restrictions.
Insurance claim processing, patient billing, managing receivables from TPAs, and reconciling hospital dues.
TPA settlements, cashless claim reconciliation, denied claim management, and patient co-payment tracking.
Exemptions vs taxable services, ITC eligibility on medical equipment, reverse charge on rent, and compliance documentation.
Doctor partnership accounting, professional fees taxation, clinic vs hospital structure, and Section 44ADA presumptive taxation.
Weighted deduction under Section 35(2AB), clinical trial accounting, patent amortization, and research grant management.
Specialized accounting and compliance services for medical practices and pharmaceutical companies
Complete financial solutions for medical practices, hospitals, and pharma companies
Department-wise P&L, bed occupancy costing
Expiry tracking, batch-wise inventory control
Lease accounting, depreciation optimization
Test-wise costing, pathology revenue tracking
Profit sharing agreements, LLP formation
Patient metrics, revenue per bed, ARPOB tracking
Healthcare businesses mix exempt and taxable activity, run on thin working capital and handle cash and insurance receipts in the same month. The classification of each service drives the tax treatment.
Healthcare services by a clinical establishment, an authorised medical practitioner or a paramedic are exempt from GST. Cosmetic procedures, certain room charges and non-medical supplies may not be, so each service line must be classified.
Credit is not available on inputs used for exempt services. A hospital with both exempt and taxable activity must apportion credit and reverse any that relates to exempt supplies.
Sales of medicines and consumables carry GST at the rate applicable to the product. Batch tracking and expiry write-offs affect both stock figures and tax credits.
Hospitals pay visiting doctors and consultants on a fee-share basis. TDS on professional fees applies, and the deduction must be consistent with the contract.
Cashless claims delay receipts and lead to deductions and disallowances. Provisioning and ageing of insurer and TPA receivables is a regular accounting task.
Clinical establishments, labs, pharmacies and manufacturers hold licences under various laws. The finance team needs to keep licence renewals on a calendar.
Healthcare finance needs a clear separation between service lines. Doctors can estimate their own liability with our income tax calculator, and larger groups can use our Virtual CFO service for service-line profitability.
No. Services by clinical establishments and qualified practitioners to diagnose and treat illness are exempt, but items such as cosmetic procedures, some room rent and non-medical supplies may be taxable. Each service should be classified separately.
Credit is not available for inputs used in exempt services. If the hospital also makes taxable supplies, credit must be apportioned between the two.
Medicines are taxable at the rate applicable to the product, and the pharmacy files returns like any other seller. Supplies to in-patients as part of treatment may be treated differently, so confirm the position for your case.
Where the payer is liable to deduct tax, TDS on professional fees applies to payments to visiting and consulting doctors. The rule depends on the nature of the payment and the status of the payer.
Track insurer receivables weekly, build a stock-reorder plan from usage data and review the discounts given. These items are usually the largest drivers of working capital.