ACC and AHA Women in Cardiology Section Webinar: Financial Fallout From COVID-19
A recent webinar presented by the ACC and American Heart Association (AHA) Women in Cardiology (WIC) Sections, Financial Fallout From COVID-19, discussed the economic impact of COVID-19 on women, including how to design compensation in a value-based world inclusive of diversity and inclusion post-pandemic and the importance of financial stability despite the current crisis.
The webinar was hosted by Cathleen Biga, MSN, FACC, president and CEO of the Cardiovascular Management of Illinois, Chairman MedAxiom Board of Managers, and member of ACC's Board of Trustees, and Alison Bettonville, CFA, principal at Capital Strategies Investment Group. It was co-moderated by Ritu Thamman, MD, FACC, assistant professor of medicine at the University Of Pittsburgh School Of Medicine, and Kamala Tamirisa, MD, FACC, who trained at the University of Michigan and is a cardiac electrophysiologist with Texas Cardiac Arrhythmia.
Key Points by Cathie Biga, MSN, FACC
Regulatory and Health Care Changes:
- Understand the broad range of regulatory changes from the Centers for Medicare and Medicaid Services.
- Check on state-specific executive orders specifying compliance, coding and documentation.
- Changes with regards to Key Stark Law exceptions relating to lease arrangements, fair market value and personal service arrangements.
- Importance of understanding the difference between telehealth vs. telemedicine.
- Effect of COVID-19 on compensation (layoffs, reduced pay and reduced volumes).
- Navigating through different compensation models and contracts moving forward: RVU vs. non-RVU-based models and how to align with hospitals.
Aid and Sick Leave Aspects:
- Families First COVID-19 Response Act (FFCRA) that centered on the emergency sick and leave.
- Coronavirus Aid, Relief and Economic Security (CARES) Act that focused on small business assistance loans, payroll protection and tax credits or deferred tax payments.
Summarized by Nidhi Madan, MD; Kamala P. Tamirisa, MD; and Renee Bullock-Palmer, MD.
Key Points By Alison Bettonville, CFA
- Large market decline during early COVID-19 stages (February March) until the federal reserve and the government reacted and implemented new bills to boost the economy.
- Most of the market decline from February to March has been recovered.
- Focus needs to be on long term investment strategies without attempting to time the market
- Having a long-term focus enables one to benefit from good market days as well as the effect of compound interest.
- Keep a diversified portfolio with different asset classes (stocks, bonds, equities, real estate, cash, etc.) to ensure that most of the portfolio's return will come from solid diversification
- Leverage all available tax deferred investment vehicles:
- Retirement plans (401k/403b) Invest up to IRS limits and maximize employer matches if available.
- Deferred Compensation
- Backdoor Roth IRA (Investments grow tax free and withdrawals at retirement are tax free.)
- Health Savings Accounts for individuals with high deductible medical plans.
- 529s College Saving Plans
- Pay attention to fees and expenses charged by advisors or brokers on advisory/investments vehicles. Some fees might be asset based (percent of total assets under management) or a fixed annual fee or a combination of both.
Summarized by Sarah Rosanel, MD; Purvi Parwani, MD; and Renee Bullock-Palmer, MD.
We hope that you were able to join us for this informative webinar by the ACC and AHA WIC Sections on the economic impact of COVID-19 pandemic on women. If you missed the webinar, the recording is available here.