In this case the taxpayer, a doctorsâ office, displayed various pieces of art in its offices, claimed depreciation on said artwork, which the IRS disallowed. At trial the IRS argued that the works of art did not have a useful life, based on Revenue Ruling 68-232.
A reduction in HAPU incidence by just 1 percentage point (3.5% to 2.5%) results in potential savings of $1,305,000 per year. Calculate your own potential savings below.
The solution to the problem is to fund those treatments with the best cost-effectiveness ratios. The cost-effectiveness (CE) ratio is the ratio of cost (C) to health effect (E). For example, $100,000 per life saved, $75,000 per life year, or $45,000 per quality-adjusted life year (QALY).