Katherine G. Watts

Katherine is the partner in charge of healthcare services for HORNE LLP. She leads a team of Certified Public Accountants and health care consultants providing services to physicians, medical groups, hospital systems, ambulatory surgery centers and other health care organizations as they develop strategies to meet today's market demands. Kathy provides healthcare, consulting and taxation services. Her primary concentration is in both the financial and operational aspects of medical practices including startups, mergers and dissolutions, outsourced accounting, physician compensation modeling, practice and clinic transfers of ownership, benchmarking and fee schedules, and tax planning and consulting. Kathy also serves on HORNE's board of directors.
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Recent Posts

December 21, 2018

Physicians: There’s Still Time for 2018 Year-End Tax Planning

Almost exactly one year ago, Tax Cuts and Jobs Act (TCJA) brought about the most significant tax reform in 30 years. It was a good news, bad news situation. The TCJA included a juicy 20 percent deduction on qualified business income for owners of pass-through entities. Sadly, the provision specifically excluded healthcare professionals and other “specified trades or businesses.” Continue reading >

Topics: Tax Planning

March 06, 2018

Moving the Needle on the Triple Aim

Charles Darwin might have been talking about the world of healthcare when he said, “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”

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Topics: Triple Aim Healthcare

December 28, 2017

What Your Peers Couldn’t Read Enough of on Our Blog

The healthcare industry has experienced monumental shifts in 2017—changes in policy, regulations, technology and mergers that make it difficult to keep up. That’s why our goal is simple: To help our clients anticipate, adapt and take advantage of a transforming industry to accelerate their growth.

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Topics: healthcare

June 26, 2017

Top Takeaways from MACRA Proposed Rule

With the proposed changes to the Quality Payment Program (QPP) released Wednesday, the new administration aims to reduce some administrative complexity and extend the flexibility that CMS provided in the initial year of the program, while incentivizing more providers to move into Alternative Payment Models (APMs).

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Topics: APMs, MACRA Summary

May 02, 2017

Would Trump Tax Plan Trigger Entity Restructuring for Medical Practices?

President Trump’s vision for tax reform has raised more questions than answers. Just one of these provocative questions is how a 15% corporate tax rate—which would apply to pass-through income as well as corporate earnings—would affect physicians and other business owners.

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Topics: Healthcare Reform Trump

March 13, 2017

What Providers Can Expect From "Repeal and Replace"

Last week House Republicans gave us a first glimpse of what they mean by “repeal and replace” of the Affordable Care Act (ACA). 

Lack of unity in the GOP and opposition from leading healthcare industry groups means the American Health Care Act (AHCA) faces significant hurdles and likely changes as it works its way through congressional committees and the budget reconciliation process. However, we can glean a few insights into how the final legislation might impact healthcare providers.

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January 12, 2017

MACRA: Are You Ready?

Wait-and-see is no longer a viable strategy for payment reform—especially with regard to MACRA implementation.

In my 30 years serving healthcare practices, I have seen innovations come and go. I certainly understand the impulse to sit back and let the dust settle before rushing to implement a new regulation, and the steady Republican drumbeat of “repeal and replace” is enough to give any provider pause.

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Topics: MACRA Summary

December 29, 2016

Healthcare in 2016—May You Live in Interesting Times

Living in interesting times may be a blessing or a curse, but 2016 proves that it certainly isn't boring. Healthcare in the United States continues to evolve—sometimes very rapidly—and those guiding healthcare organizations have particular challenges ahead of them in the coming years.

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Topics: Healthcare Quality

December 08, 2016

Will MACRA Fall Victim to Repeal and Replace?

I've just returned from the National MACRA MIPS/APM Summit in Washington, D.C., where the overarching discussion centered on how to create and implement strategies that pay physicians fairly, while controlling spending in the Medicare program. It's a question we've wrestled with for almost 20 years and a challenge we must solve.

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Topics: APMs, MIPS Healthcare, MACRA Summary

September 16, 2016

CMS Delays MACRA Implementation; Don’t Slow Your Efforts to Comply

In a move that was widely applauded by medical groups such as the Medical Group Management Association, the American Medical Association, and the American Academy of Family Physicians, CMS announced that it is making the start of MACRA implementation more flexible next year. Although the performance evaluation period may be delayed, the start of payment changes will not be delayed.

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Topics: MACRA Summary

June 24, 2016

Pressure Points for Physicians in Healthcare Transformation

The HORNE Healthcare team has been blogging recently about the necessary business model changes we think are inevitable to healthcare transformation. We’ve focused on the macro level, urging healthcare organizations to take action. While I believe our advice is sound for large systems, I am additionally concerned about the pressures physicians are feeling in their practices, particularly in small practices. In this blog, I’d like to introduce three issues I think will be important to physicians going forward. I will write in greater depth on each topic in the coming weeks. 

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Topics: Affordable Care Act Summary, Cost Accounting

May 26, 2016

Failing to Act Now May Put Your Healthcare System at Risk

At a recent national conference, I heard top executives from some of the largest healthcare systems in the country discuss their business models and their healthcare delivery transformation during the past several years. We can count on the Geisingers and the Mayos, as well as other large systems, to lead the way, but I was struck by the extent of their progress towards offering value and outcomes to patients rather than the traditional models present today in many systems. They are doing, quite successfully, what many smaller systems are only beginning to debate. They are proving that new models can deliver better patient care and still be profitable.

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Topics: Healthcare Data, Affordable Care Act Summary, Cost Accounting

March 04, 2016

Are You Ready to Capitalize on New Opportunities in Healthcare Transformation?

Bundled payments. Volume-to-value. Cost accounting. Process improvement. Patient engagement. Population health. Organizational leadership.

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Topics: Healthcare Quality, Population Health, Healthcare Reform, Cost Accounting