The city contends these surgery centers should be required to pay taxes at the rate charged to real estate leasing companies, about $23 for every $1,000 of gross receipts, compared to the current business tax they pay, about $1,300 flat for the first 2,080 billable hours and 62 cents for each additional billable hour.
Beverly Hills City Hall has identified two surgery centers for which it wants to increase taxes, both of which are co-owned by Symbion and a group of physicians. If the city is able to impose the increased tax rate, these facilities would pay about $150,000 annually in business taxes, almost four times their current rate, according to the report. The city is looking into finances of other surgery centers as well.
The surgery centers contend their business is not renting commercial property and therefore they should not be subjected to the higher rate.
Read the Los Angeles Business Journal report on Beverly Hills surgery centers.
Read more about surgery center business:
– 6 Critical Components for Surgery Center Strategic Planning
– 17 Steps to Take When a Payor Changes Payment System From Medicare Grouper to APC-Based
– Rebuilding the Physician-Hospital Relationship — The Joint Venture Opportunity