Division

A division represents an entity that is formed for the purpose of providing medical services to patients and billing for these medical services to patients and their insurance carriers.  Simply put, in our definition above, a division is a legal entity that has a Tax ID number, files Federal and State income tax returns, receives 1099's from insurance carriers, owns assets including bank accounts and real property, etc.  In short, it is a "business".

In MedSuite's nomenclature, the term "division" performs two functions.  First, it allows us to define the legal entity called Anesthesia Associates of America as a reporting "roll-up".  More importantly, is allows us to separate the financial data of different legal entities that may be operating as a single "practice" but which are actually different businesses whose funds cannot and should not be co mingled.

In the practice example provided previously, Anesthesia Associates of America may be set up as one or more divisions.  All of the services provided by the physicians that comprise the practice Anesthesia Associates of America may be provided by a single legal entity (i.e. division) called Anesthesia Associates of America.  Conversely, the services provided by these physicians may be allocated to several legal entities (i.e. divisions) by type of service and called the Anesthesia Division, Chronic Pain Management Division, and Critical Care Division.  However, the services provided by these physicians could be allocated to several legal entities (i.e. divisions) by the location in which the service was performed and called the Hospital A Division, Hospital B Division, etc.  Practically any reason one can imagine may be used to define the division.  The important fact is that a "practice" may and often does consist of several legal entities.  Our goal is to accommodate this requirement without putting too many unnecessary restrictions in place.