Pennsylvania coalition challenges ASC tax with potential $100K burden — 6 insights

Several medical societies came out in opposition to a 2.81 percent tax on ASCs and endoscopy centers proposed by Pennsylvania Gov. Tom Wolf, D, according to the Pennsylvania Medical Society. 

Here are six insights.

1. Mr. Wolf's budget proposal includes "a proposed assessment on ambulatory surgical centers" to generate $25 million for the state's Medicaid program.

2. The Pennsylvania Ambulatory Surgery Association is leading a coalition of state medical societies, including the Pennsylvania Medical Society, in opposing the tax.

3. The coalition sent a letter to Pennsylvania legislators expressing concern the proposal would create an annual tax burden of approximately $100,000 for each ASC in the state.

"Pennsylvania should be encouraging ASCs – not taxing them out of the market," the letter said. "This proposed new health care tax will force over a quarter of these facilities to operate at a loss."

4. Mr. Wolf rolled out the budget proposal in February. The state's budget deadline is June 30.

5. Pennsylvania has 271 ambulatory surgical facilities, according to the Pennsylvania Department of Health.

6. In December 2017, legislators passed Pennsylvania Act 70 of 2017, which changed the definition of an ambulatory surgery facility. The change took effect in February.

More articles on turnarounds:
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