IRS Denies Tax-Exempt Status for Lancaster General Ambulatory Surgical Services
Lancaster Online report.
Lancaster General is challenging the determination, which was handed down by the IRS in May. If the decision is upheld, the healthcare system could owe taxes.
The entity involved is Lancaster General Ambulatory Surgical Services, which runs the surgery center. Lancaster General Health created the entity in 2006 and owns 50 percent stake in the entity; a group of surgeons owns the other half of the surgery center.
In 2008, Lancaster General Health asked the IRS to recognize the entity as a charitable organization. But in financial statements filed earlier this year, the system said the IRS had determined that the entity does not meet charitable organization criteria because it has insufficient control over its joint venture organization to ensure that the organization is operated in a charitable manner.
Related Articles on Transactions & Valuation:
ASCOA Opens Joint Venture Surgery Center With Florida's Bartow Regional Medical Center, Local Physicians
Ambulatory Alliances Releases Free Webinar on How to Effectively Market Your ASC
Building a Spine Surgery Center: 5 Points From Dr. Richard Kube
© Copyright ASC COMMUNICATIONS 2015. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.
New From Becker's ASC Review