Independent ambulatory surgery centers in Connecticut are taxed as non-profit healthcare providers (like hospitals) and as independent medical practices (like small businesses) – without the benefits of either.
Connecticut needs to apply one method of taxation or another, but not both.
Connecticut needs to apply one method of taxation or another, but not both.
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The 61 ambulatory surgery centers in the state provide high-quality, low cost preventive, diagnostic and surgical services and procedures not requiring a hospital stay. They are where people go for cataracts, colonoscopies, and “GI” procedures.
The tax has had a chilling effect on ambulatory surgery centers. Five years ago, according to the Connecticut Department of Labor, our industry was poised to grow 39% through 2024. Today we struggle just to stay afloat. Providing efficient healthcare services that improves health and reduces costs is being taxed to death.
Connecticut is one of only four states with an ASC tax. Among them, we have – by far – the highest rate in the nation. This isn’t healthy. Not for our patients and not for the health care providers that choose to operate efficient, innovative medical offices that make healthcare more effective and affordable.
More than 50 bills have been introduced to repeal, reduce or phase out the ambulatory surgery center tax. Last week, the legislature’s Finance committee – in a unanimous, bipartisan vote – advanced a bill (SB 1131) in favor of providing tax relief for the state’s ambulatory surgery centers.
We applaud and appreciate their efforts – it’s a step in the right direction, but fully repealing the onerous 6% ASC tax is the only way to stabilize an industry with significant economic impact to this state and to keep healthcare costs in check. Without independent ASC’s patients and their insurers would pay twice as much, and probably have to wait twice as long, to have their same-day surgical procedures in a hospital-owned facility.
The ASC tax is undermining the health of Connecticut residents and the viability of our industry, which is built on a business model far different than that of hospitals.
The tax has had a chilling effect on ambulatory surgery centers. Five years ago, according to the Connecticut Department of Labor, our industry was poised to grow 39% through 2024. Today we struggle just to stay afloat. Providing efficient healthcare services that improves health and reduces costs is being taxed to death.
Connecticut is one of only four states with an ASC tax. Among them, we have – by far – the highest rate in the nation. This isn’t healthy. Not for our patients and not for the health care providers that choose to operate efficient, innovative medical offices that make healthcare more effective and affordable.
More than 50 bills have been introduced to repeal, reduce or phase out the ambulatory surgery center tax. Last week, the legislature’s Finance committee – in a unanimous, bipartisan vote – advanced a bill (SB 1131) in favor of providing tax relief for the state’s ambulatory surgery centers.
We applaud and appreciate their efforts – it’s a step in the right direction, but fully repealing the onerous 6% ASC tax is the only way to stabilize an industry with significant economic impact to this state and to keep healthcare costs in check. Without independent ASC’s patients and their insurers would pay twice as much, and probably have to wait twice as long, to have their same-day surgical procedures in a hospital-owned facility.
The ASC tax is undermining the health of Connecticut residents and the viability of our industry, which is built on a business model far different than that of hospitals.
Connecticut is taxing quality, lower-cost health care at a higher overall tax rate. And that's not healthy.
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Connecticut Association of Ambulatory Surgery Centers
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