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Tax Deductions
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Deducting Losses from Treating Uninsured Patients

If a physician is self-employed (LLC) as a traumatologist, on call with a Level II trauma center, can he or she or she deduct losses incurred as a result of treating uninsured patients in California? Providing medical care is not optional. As such, I would have to imagine there must be lawful deductions available for physicians providing care without reimbursement.

Zip Code: 92109

Re: Deducting Losses from Treating Uninsured Patients

Unfortunately, there is no expense to claim if you treat a patient and don't get paid. (My two points are going to sound unfair and maybe even slightly ridiculous,) but the way you save taxes in this situation is two-fold:

1. Since you didn't get paid, you don't pick up any income for the time spent with the patient that didn't pay you. Less collected income means less taxes. Imagine if they taxes you on income you didn't receive.

2. If you have a practice (versus working for an organization), you still incur your overhead costs while treating patients that don't pay you. Your front desk staff won't forfeit their hourly salary while you are treating patients for free. So you will save taxes while treating patients that don't pay you by incurring your normal overhead expenses.

I know this isn't the answer you were looking for. But these are the rules as I understand them to be.

Zip Code: 01801