Coronavirus (COVID-19) Impact


Business/Financial Observations

The current situation reminds us all that contingency plans are a necessity.  Besides cross-training employees to perform multiple functions when others are sick, please review your sick pay/time off policies to address your financial commitments to staff members.  In addition, please review the following list and update items as necessary:

·       Employee Emergency Contact Information

·       Criteria for suspending business operations as a result of employee illness or a cluster of illness in your local community.

·       Think about posting a sign in your office reminding patients to take precautions when experiencing any of the common symptoms such as fever, cough, and shortness of breath.

·       Emergency Operations planning should address

o   Phone coverage

o   Methods for communicating practice operations updates to staff

o   Method for communicating important information to nervous and sick patients

o   Continuity of basic business functions during a period of disruption:

§  Patient Scheduling

§  Paying Bills, including payroll

§  Depositing Funds

§  Billing and collections

o   The handling of clinical emergencies—particularly in dental offices.  

·       In most health-care practices, a large share of collections arrive 30 days after services are rendered and monies continue to be collected during the first 30-60 days after a business interruption.  Please evaluate your contingency plans with these cash flows in mind and determine your anticipated needs after that initial disruption. 


o   Postponing large financial outlays including

§  Equipment Purchases

§  Unnecessary compensation/bonuses

§  Unusual supplies purchases

§  Extraordinary Repayments of debt

§  Funding the employer portion of retirement plan contributions

o   Positioning the business to weather a 30-day disruption in cash flows by:

§  Renewing/establishing a business line of credit equal to at least 30 days of total practice expenses.

§  Evaluating personal financial resources should the necessity arise for the business owners to forgo compensation for 30 days.  This may include securing a personal line of credit or positioning investments to provide liquidity should the need arise.

§  Reviewing insurance coverage for business interruption coverage.  We are told that policies do not cover “pandemic” related business interruptions, but review your coverage in any case.

The likelihood of long-lasting disruption to your business appears small at this point, but planning for such a disruption should be an ongoing part of your business planning. 

For your reference, the Centers for Disease Control has created reference material for businesses:


Similarly, the U.S. Department of Labor has created a website for your reference:


Here are resources from the American Medical Association and the American Dental Association:


Here are resources from the Illinois and Indiana State Department of Health:


Here is another workplace resource that we found useful. It is from a law firm, and we do not render legal advice, so please consult your business attorney regarding legal matters.


PBM: Operational Update—Potential Impact to Business Continuity

In addition to providing timely business advice to clients, we feel that it is important to communicate how PBM is prepared to address our operational and business continuity.

As part of our operational plan, this virus could be categorized as an event which might compromise our office accessibility.  To address these rare situations, we have equipped all PBM employees with secure remote access to our computer network.  Our network utilizes robust multi-factor authentication protocols and is securely backed up to a remote location.   Furthermore, clients will have continued access to our various portals through an internet connection.

Given our operational setup, we are confident in our ability to continue to support our clients and maintain a safe working environment for our employees.  We will continue to monitor the status and progress of this outbreak, including any impact to our business, and provide future updates as appropriate.

So far, the IRS has not extended any tax related deadlines. Until they do, it will be business as usual. We will keep you abreast if anything changes.

If you have in-person meetings scheduled with any member of our team, please let us know if you would prefer a phone or digital meeting and we would be happy to oblige.



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