How should an organization view expenses related to the compliance program?

Viewing expenses related to a compliance program as regular operational costs that are tax-deductible is appropriate because compliance is integral to a healthcare organization’s functioning. Compliance programs help ensure adherence to various regulations and standards, which protects the organization from potential legal issues and penalties that can arise from non-compliance.

When these expenses are recognized as part of regular operational costs, it aligns with the idea that maintaining compliance is essential for sustaining business operations, rather than viewing it simply as an add-on or an optional expense. Such expenses, including training, auditing, and monitoring systems, are typically necessary for achieving and maintaining regulatory compliance, thus justifying their treatment as operational costs. Furthermore, being tax-deductible allows organizations to alleviate some financial impact, underscoring the value of investing in compliance as part of the overall strategy to run a successful and legally compliant business.