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When Opportunity Knocks, Do You Answer?


If your practice is considering a capital equipment purchase, you need to act fast: A significant tax benefit is set to expire at the end of 2010.

Act now and you could accelerate profitability on new testing devices while saving your practice tens of thousands of dollars – all while expanding your patient base and improving patient care and outcomes.

Here’s the big picture:

  • Section 179 of the US tax code allows a 100% deduction of the cost of new business property up to an annual ceiling amount.  A maximum deduction ceiling of $250,000 maximum was extended for the 2010 tax year under the Obama Administration’s HIRE Act but will likely be reduced to as low as $25,000 in 2011.
  • Coupled with Medicare’s restoration of 2009 reimbursement rates, the expiring tax benefit means you can quickly recoup your capital investment and enjoy a more profitable testing model.

What are the dollars and cents?

  • If you purchase equipment prior to December 31, 2010 you can write off up to $250,000 as an expense instead of depreciating it over several years.
  • On a $148,500 I-Portal® NOTC-P system, as an example,  this equates to a maximum write off of $51,975 (at a 35% tax rate).
  • On a $31,000 I-Portal® SVNG-1 system this equates to a maximum write off of $10,850 (35% tax rate).

(Please consult your tax accountant to evaluate these numbers based on your specific tax rate.)

What does this mean for my practice?

  • There is no better time to add new and enhanced testing capacity and superior diagnostic equipment to expand your clinic’s quality and capabilities.  Higher quality tools mean improved patient outcomes. 
  • Now is the time to invest in the most advanced diagnostic testing platform in neuro-otology.  Neuro Kinetics I-Portal® products are a non-invasive diagnostic tool with exceptional data resolution and the most extensive battery of vestibular, ocular motor and optokinetic tests in our field.   

What is the latest news on Medicare reimbursement?

  • In addition to the restoration of 2009 rates, providers will now be able to bill for individual tests included in the new bundled code, 92540, Basic Vestibular Evaluation.  A system error has been changed allowing Medicare billing of combinations of three or fewer of test codes 92541 (spontaneous nystagmus), 92542 (positional nystagmus), 92544 (optokinetic nystagmus), and 92545 (oscillating tracking).
  • Combined with 92546 (sinusoidal rotation) you can create a positive revenue stream in year 1 with as few as 700 patients.  Ask for NKI’s estimated revenue model. 

Please contact us for more information.  Email Sidne Kardos at or call at (412) 963-6649.