MaineCare

As BerryDunn’s Healthcare Practice Group lead, Lisa Trundy-Whitten is closely attuned to the healthcare industry. From challenges faced by healthcare organizations to the solutions BerryDunn’s experts can provide, Lisa shares thoughtful insights for healthcare leaders.  

As we begin 2026, healthcare organizations have an opportunity to reset. Several years of sustained disruption have created a transformational moment for both operational and strategic realignment. Many organizations are transitioning from a period of reactive decision-making and are now better positioned to take a more intentional, proactive approach. As healthcare leaders, you’re beginning to see opportunities to restore margin, build resiliency, and boost strategic growth.

Positive signs in the industry 

While you continue to face ongoing challenges, there are encouraging signs across the healthcare continuum. Here are some examples: 

• Volume stabilization is occurring in many sectors. 
• Workforce shortages have declined. 
• Providers and payers are strengthening financial discipline with innovation. 
• Value-based pilots are growing. 
• Creative employee retention programs are being implemented. 
• Telehealth and Artificial Intelligence (AI) are on the rise. 

Pursue near-term wins 

Now is the time to re-align your clinical priorities with financial realities by: 

• Reassessing your service lines 
• Renegotiating payer contracts using better data 
• Improving cost transparency

Instead of pursuing major changes, consider making small, intentional adjustments such as:  

• Recalibrating productivity benchmarks 
• Using better revenue cycle processes to reduce denials 
• Improving forecasting 

All of these adjustments can create near-term wins that you can leverage to build momentum early in the year.  

Be intentional with your progress in 2026 

The trends that have challenged the industry continue to shape what we are seeing today: 

• Continued pressure on labor costs 
• Regulatory uncertainty and complexity 
• Ongoing scrutiny from lenders, regulators, and boards 

At the same time, there is a shift toward value-based care, outpatient migration, and greater reliance on data in decision-making. 

So, how do you respond to these challenges and changes? Our advice is to apply focus and discipline. By clearly defining your strategic priorities and directing funds accordingly, you can make the most of limited resources. 

Harness emerging technologies 

Rather than view emerging technologies like AI as optional experiments, thoughtfully embrace them as tools to boost efficiency, reduce costs, and improve care. AI can speed up revenue recovery, lower administrative burdens, improve clinical decisions, and enhance the patient experience.  

Are you wondering where to start? Identify the pain points where technology can deliver value for your organization. Consider focusing on specific initiatives like optimizing your revenue cycle, forecasting, compliance monitoring, or analytics, rather than leaping into broad, less focused initiatives. Keep it simple and small when beginning. Form an AI governance committee to prioritize use cases, manage risk, and scale what works.  

Sustainability often depends on making the right investments. A strategic investment in technology can lower long-term costs, mitigate risk, and enhance decision-making—all in support of your organization’s mission.

BerryDunn can help 

As you look ahead in 2026, there will be challenges. Rather than letting these obstacles define you, view them as opportunities to respond with more clarity, stronger discipline, and renewed confidence. The path to your organization’s success is recognizing and understanding the financial and regulatory landscape while thoughtfully adapting and investing in your future. 

If you need support, reach out to us to discuss ways we can guide you and help you improve outcomes. I encourage you to explore our comprehensive breadth of services and learn about our team of experts across healthcare practices. 

Best,

Lisa Trundy-Whitten

Read this article if you are a leader in the construction industry.

As the construction industry faces mounting pressure to reduce its environmental footprint, artificial intelligence (AI) is emerging as a powerful driver of change. From optimizing material usage to monitoring energy consumption, AI is helping companies build smarter, greener, and more efficiently than ever. 

The challenge of sustainability in construction 

Construction is responsible for nearly 40% of global carbon emissions, much of which results from inefficient design, material waste, and energy-intensive operations. As clients and regulators demand more sustainable practices, companies are turning to AI to meet these expectations without compromising quality or profitability. 

How AI can help 

1. Material optimization: AI algorithms can analyze building plans and recommend more sustainable or locally sourced materials. They also help reduce waste by predicting exact quantities needed, minimizing over-ordering and excess inventory. 
2. Energy modeling and monitoring: AI-powered tools simulate energy usage across different design scenarios, helping architects and engineers choose layouts that maximize efficiency. On job sites, AI can monitor real-time energy usage, identifying opportunities for efficiency gains and cost savings. 
3. Predictive maintenance: By continuously monitoring equipment and building systems, AI can anticipate failures before they occur. This proactive approach reduces downtime, extends asset life, and minimizes unnecessary replacements. 
4. Smart scheduling: AI analyzes weather patterns, labor availability, and supply chain data to optimize project schedules. This reduces idle time, avoids delays, and limits resource waste. 
5. Carbon tracking: AI platforms calculate a project’s carbon footprint from start to finish, offering insights into how design choices, transportation, and materials impact emissions, as well as how to reduce them. 

Real-world impact of AI 

Forward-thinking companies are already seeing results. Projects that integrate AI into their sustainability workflows report: 

• Up to 30% reduction in material waste 
• Around 20% improvement in energy efficiency 
• Faster compliance with green building certification requirements 

What’s next for AI in construction? 

As AI continues to advance, we expect to see deeper integration with the management of buildings and infrastructure, autonomous construction equipment, and even AI-assisted design. The future of sustainable construction isn’t just about building better; it’s about building smarter. 

BerryDunn’s construction team partners with clients to provide meaningful insights on best practices in building capacity, stabilizing cash flow in growth, reducing tax liabilities, capturing reimbursable local taxes, and navigating state nexus. Learn more about our team and services.  

Bonus depreciation is officially back at 100%, and the rules for 2026 look very different from what many taxpayers had been planning for. After years of preparing for the gradual phase-down under the Tax Cuts and Jobs Act (TCJA), the One Big Beautiful Bill Act (OBBBA) of 2025—along with new IRS guidance in Notice 2026-11—restores full expensing for most qualified property and establishes a clearer long-term framework.

BerryDunn's tax experts have compiled a comprehensive summary of what changed, how the rules work now, and what businesses need to know as they plan for upcoming capital investments.

Notice 2026-11: Key updates driving the 2026 bonus depreciation rules

Notice 2026-11 serves as the IRS's bridge between the old TCJA regulations and the new OBBBA system. Rather than issuing a complete rewrite of §1.168(k)-2, the IRS introduced a "date substitution" approach to quickly align existing regulations with the new law.

New effective dates for determining 100% bonus depreciation

To determine whether property qualifies for the renewed 100% bonus rate, taxpayers must now:

• Use January 19, 2025, in place of September 27, 2017

• Use January 20, 2025, in place of September 28, 2017

What this means in practice: If a business acquires and places property in service after January 19, 2025, the property generally qualifies for 100% bonus depreciation under the updated rules.

Bonus depreciation requirements for 2026: Understanding the four tests

Even with the OBBBA changes, property must still satisfy four primary requirements under §1.168(k)-2 to be considered "qualified property."

1. Qualified Property Type (MACRS, QIP, Software, and More)

Eligible property includes:

• MACRS property with a recovery period of 20 years or less
• Computer software
• Qualified Improvement Property (QIP)
• Qualified sound recording productions (added by the OBBBA, new for 2025/2026)

This expansion makes the property type test more favorable for entertainment, technology, and capital-intensive industries.

2. Acquisition test: Binding contract rules matter

To qualify for the 100% deduction, the property must be acquired after January 19, 2025, based on the written binding contract date. If a binding contract existed before January 20, 2025, the property generally falls under the old 40% bonus depreciation rate, not the new 100% rate.

This distinction is critical for taxpayers evaluating bonus depreciation contract date rules for 2026.

3. Original use or used property requirements

The TCJA rules for original use and used property remain in effect:

Original-use property: The first use must begin with the taxpayer.

Used property: Still qualifies if the taxpayer (or a predecessor) did not previously use it, and it was not acquired from a related party.

4. Placed-in-service test: Why the January 19, 2025, date matters

To qualify for the 100% rate, property must be acquired and placed in service after January 19, 2025.

This rule is especially relevant for taxpayers with fiscal year ends in mid-2025 or early 2026, where assets cross the legislative changeover date.

The 40% bonus depreciation election: A strategic tax planning option

While 100% bonus depreciation is now the default, the OBBBA and Notice 2026-11 preserve the important 40% bonus depreciation election (and 60% for long-production-period property).

Why elect less than 100%?

1. Managing Net Operating Losses (NOLs)

Electing 40% can help businesses avoid creating NOLs limited by the 80% taxable income cap, preserving deductions for potentially higher-tax-rate years.

2. Preventing wasted credits

Some nonrefundable tax credits are lost if taxable income drops to zero. Using the 40% rate gives businesses more precision in aligning deductions and credits.

The election applies to the first taxable year ending after January 19, 2025, and covers all qualified property placed in service during that year.

What 100% bonus depreciation means for 2026 capital planning

With Notice 2026-11 in place, businesses now have clarity as they model 2026 capital spending. Companies with heavy investment in equipment, real estate improvements, or cost segregation studies stand to benefit the most.

The return of full expensing—combined with the new flexibility provided by the 40% election—creates a more stable and planning-friendly environment than taxpayers have seen since the early TCJA years.

About BerryDunn

Our seasoned tax professionals partner with you to offer practical, accessible guidance and develop detailed strategies that support your unique needs. We excel at tax strategy and solutions, placing an emphasis on building long-term relationships. Our deep expertise spans a full range of tax concerns, tax services, and consulting to support individuals, businesses, and nonprofit organizations. Our tax consultants are specialists in their industry, working closely with colleagues across the firm to deliver integrated, comprehensive solutions. Learn more about our services and team.

Disclaimer

This article provides a general overview of tax law changes. For advice addressing your specific situation, please consult a qualified tax professional.

Read this article if you are a town, city or county administrator, CFO, controller, finance director, accounting manager, selectman, or councilor at a governmental entity or nonprofit.   

Does every audit feel like a rescue mission? Do you often feel like each year is the same as the last? You’re not alone. Many nonprofit and governmental agencies experience turbulence along the way; no audit is perfect. In this article, we’ll outline a strategic approach to help your audit journey progress to planned readiness. 

Audit rescue mission  

Every mission, whether it's rescue or readiness, starts with a plan. If you’re feeling the heat from what seems like everything being on fire, that’s okay. No amount of ‘doing more’ is going to get you closer to success. The best first step is to stop, pause, and take stock of where you’re at, what you’re working with, and where you’re headed. Look no further than your next audit cycle—whether that means the current audit you’re in, the one that just won’t end, or the one up ahead. 

Step 1: Get a lay of the audit land 

• Rearview perspective: What worked, what didn’t 
• Critical issues: Prior year and recurring findings, internal control deficiencies, issues of non-compliance 
• Operational pitfalls and inefficiencies: Staffing shortages, technical skills gap, lag times from external departments, technology limitations 
• Known obstacles: New standards, new software implementations, turnover in auditors or internal organizational structure

Getting a lay of the land can be a simple first step to alleviate some weight from your back and lighten the mental load, putting you on the path forward. 

Now that you know what you’re working with (and not!), it’s time to put pen to paper. 

Step 2: Make an audit plan 

• Deadlines: Know the end goal you’re working toward. 
• Phases and milestones: Consider time needed for review and revisions, and the availability of resources along the way, include regular checkpoints to keep the momentum going, and adjust as needed. 
• Know your cutoffs and when information is available: Prioritize areas based on when the information will or can be ready to work with. 
• Get the word out: Identify key stakeholders in your plan and inform them of their role and key dates in support of the overall objective. 

Step 3: Get started 

• Don’t wait: Do what you can today. 
• Organize as you go: Set aside copies of source documents as you become aware of them. 
• Address things as they arise: Set up subaccounts for better tracking. 

Every good plan is best executed with a team committed and aligned to success. Next, we’ll discuss how to champion your audit approach and make progress even when the going gets tough. 

Run and refine your audit plan 

Resources and recon, deploying your plan, checklists, technology, and champions—don't be afraid to work with your auditors throughout the year. 

Step 4: Think outside the box 

• Collaborate: Recruit internal and external department team members, organize an audit task force of champions, consider keeping seasonal employees, and create an internship program. 
• Touch base with auditors: Call or meet regularly to keep them informed or ask for guidance. 
• Network with other agencies: Inquire with peer agencies, share resources, and support each other. 
• Connect with member organizations: Join listservs, research sample policies and procedures, and attend local chapter meetings and trainings for additional resources and insights. 
• Leverage technology: Partner with IT to set up custom reports, create templates, set alerts and reminders, explore project management tools, or create calendars. 

Step 5: Simplify for success 

• Break down complex areas into bite-sized tasks: Consider reviewing and maintaining details for capital assets, grants, leases, and SBITA during mid-year or on a quarterly basis. 
• Transition away from annual and manual: Transition from one-time year-end to multi-period reconciliations and adjustments, including budgeted transfers, indirect cost allocations, accruals, and fund balance maintenance and reporting.
• The balance sheet can be your best friend: Expand period-end procedures to include reconciliation and monitoring of all balance sheet accounts, track grant reimbursements through deferred revenue to cut down on time spent reviewing expense and revenue account details, make sure AP and AR tie out every month, and track down payroll liability discrepancies as they occur. 

Shift to audit readiness 

Progress, not perfection, is the mindset to have when preparing your agency for an audit. Having a system in place that catches 90% of the heavy lift during the year sets you up to address the outliers as they surface, with more capacity and ease to adapt under pressure.  

For more tools in your toolbox, here are some additional tips to maintain progress toward a successful audit:

• Beginning balances: Tick and tie the balance sheet to the financial statements both before and after the year has been closed in your accounting system, including reconciling the beginning fund balance. 
• Just another month: Do as much as you can throughout the year so that year-end tasks feel like just another month within your operations. 
• Period 13 and 14: Track year-end financial statement adjustments in period 13 and audit adjustments in period 14 to keep things more organized and report appropriately for budgetary purposes. 
• Government-wide statement tracking: Setting up General Long-term Debt Group (GLTDG) and General Fixed Asset Account Group (GFAAG) funds and accounts to better manage the tracking and reporting of long-range elements of year-end and the financial statements that would otherwise live in a subsidiary module or system. 
• Pooled cash: Rely on pooled cash to ensure transactions and funds are balancing properly. 
• Pre-audit pseudo-internal audit: Set an internal materiality threshold and review for internal control compliance, set revenue and expenditure materiality thresholds at the budget level, and review for inconsistencies throughout the year to get ahead of questions at year-end from the auditor’s analytics.

If you’d like to discuss what working with a consultant could look like for your organization, reach out to our Governmental Accounting team. We’ll walk with you through the process, help ease the burden, and set you up for long-term success. 

Read this article if your role includes hiring or contracting with physicians, dentists, behavioral health clinicians, advanced practice providers, non-patient facing staff, engaging with temporary employment agencies, or conducting exclusion screening. 

In a changing healthcare landscape, ensuring that all members of your organization—from administrative to clinical—meet federal eligibility requirements is imperative. Exclusion screening goes beyond regulatory compliance, protecting against costly penalties. Recent enforcement actions highlight the consequences of noncompliance. This article explores the essentials of exclusion screening, common mistakes, and practical insights to help your organization remain compliant.

What is exclusion screening? 

The US Department of Health & Human Services Office of the Inspector General (OIG) has the authority to exclude individuals and entities from federally funded healthcare programs, such as Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), and TRICARE, for a variety of reasons. No federal healthcare program payment may be made for any items or services furnished by: 

• An excluded person, or 
• At the medical direction or the prescription of an excluded person. 

The exclusion and the payment prohibition continue to apply to an individual even if he or she changes from one healthcare profession to another while excluded.

Exclusion screening: Don’t forget non-clinicians 

This prohibition extends beyond direct patient care. Excluded individuals are also barred from performing administrative or management services that may be reimbursed by federal healthcare programs, even if administrative or management services aren’t billed separately.  

For example, an excluded person cannot hold executive or leadership roles at any healthcare entity that provides items or services covered by federal healthcare programs. Also, excluded individuals cannot provide administrative or management services—including health IT, strategic planning, billing, accounting, staff training, or human resources—unless these activities are entirely unrelated to federal healthcare programs. 

Penalties for employing/contracting with excluded persons or entities 

If a provider or entity arranges or contracts (by employment or otherwise) with a person, contractor, or vendor that the provider or entity knows or should know is excluded, they may be subject to a civil monetary penalty (CMP) liability of up to $10,000 for each item or service furnished by the excluded person for which federal program payment is sought, as well as an assessment of up to three times the amount claimed, and program exclusion. 

CMP liability could result even if the excluded person is a volunteer or does not receive payments from the provider for his or her services (e.g., a non-employed excluded physician who is a member of a hospital’s medical staff; or an excluded healthcare professional who works at a hospital or nursing home as a volunteer). 

For example, if a hospital contracts with a staffing agency for temporary or per diem nurses, the hospital will be subject to overpayment liability if an excluded nurse from that agency furnishes items or services. 

How and when to conduct exclusion screening 

To reduce CMP liability risk, organizations should check the OIG’s online List of Excluded Individuals and Entities (LEIE) before hiring or contracting, and periodically review it for current staff, contractors, and vendors. 

In addition to the LEIE, there are other important exclusion screening databases that should be monitored regularly: 

• The System for Award Management (SAM): Administered by the federal General Services Administration (GSA). The SAM includes debarment actions taken by multiple federal agencies. 
• State Medicaid exclusions: Most states have their own Medicaid exclusion lists and must notify the OIG. Due to possible timing delays, it is important to check state lists, as well as the LEIE and SAM.  

OIG exclusion screening enforcement actions in 2025 

Between January 1 and December 31, 2025, the OIG reported 10 enforcement actions against healthcare organizations that hired or contracted excluded individuals.  

These enforcement actions resulted in a total of $2,500,000 in penalties with 90% of the penalties focused on home healthcare and skilled nursing facilities.

BerryDunn can help 

Do you have questions about your healthcare organization’s exclusion screening policies, procedures, and workflows? If your organization outsources its exclusion screening functions, how do you monitor your contractor’s performance? 

Our healthcare compliance team can help. We incorporate deep, hands-on knowledge with industry best practices to help your organization manage compliance and revenue integrity risks. Learn more about BerryDunn’s healthcare compliance consulting team and services.

Additional healthcare exclusion screening resources: 

• Search the OIG Exclusions Database 
• Special advisory bulletin and guidance on exclusion  
• Applying for reinstatement after exclusion