The proposal would also lift the cap on the 0.53 percent assessment levied on hospital operating revenues.
If the cap on ASCs is removed, an ASC with an operating revenue of $10 million could face up to an additional $100,000 in taxes, according to Jeffrey Shanton, director of business management at Journal Square Surgical Center in Jersey City, N.J.
Governor Christie estimates that removing the caps will generate $45 million in additional revenue for the Health Care Subsidy Fund, which would then be matched with federal funds and redistributed to hospitals, according to Mr. Manigan.
New Jersey, as many within the industry know, is a particularly tough climate for ASCs, and Mr. Manigan says the threat against caps is one of many threats by lawmakers and insurers against ASCs in the state. “The proposed increase in the [ambulatory care facilities] tax, along with the various legislative threats to out-of-network providers and their patients, will unquestionably make for an intense 2010,” he says.
Contact Lindsey Dunn at lindsey@beckersasc.com.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
