Hi Everyone,
We wanted to provide you with a quick update on our efforts on the governor’s proposed Ambulatory Surgery Center (ASC) tax.
To recap, the Administration wants to impose a 3 percent tax on ASC Net Patient Revenue. Net Patient Revenue is what an ASC is paid for patient care services. This is a tax before expenses are taken out and it would come at a significant cost. If the tax is enacted, the result will dramatically decrease patient access to quality, affordable community-based healthcare in Pennsylvania.
We are continuing to meet with key leadership and staff. While revenues projections for the Commonwealth are looking better, we aren’t at the June 30 budget deadline yet. Moreover, the administration is continuing to sell the tax as a way to encourage ASC participation in Medicaid expansion and Community HealthChoices (CHC) program to save the system money. They contend ASCs do not participate in Medicaid.
Based on our meetings, we have two action items:
- Contact your local PA House Representative and PA Senator and tell them to OPPOSE the governor’s tax on Surgery Centers and also invite them to your facility for a tour. Lawmakers are now back home in the districts and will return to Harrisburg at the end of May. While they are home, they need to hear from their constituents – those that vote them into office.
- Contact Governor Wolf and tell him you OPPOSE the tax on Surgery Centers. Governor Wolf is proposing the tax and needs to hear from you.
On our end, we will be reaching out to insurance carriers to see if we can get them to weigh-in on the tax since the tax will shift patients into the costlier hospital setting. We were asked during our meetings where they stood on the tax. The hospitals have indicated that they are taking no position.
We also wanted to let you know that following our meetings last week, we received a call from the Executive Director/Counsel for the Senate Health & Human Services Committee. He’s heard from us and he’s heard from DHS. Given that our views on the tax are very different, he is interested in setting-up a meeting with us both. We see this as a good thing and an opportunity to peel the onion. This will likely happen at the end of May.
Our next round of meetings in Harrisburg is scheduled for
June 6. We are also looking at a round on June 13.
Please let us know if you have any questions. We will continue to keep you apprised.
Thanks in advance for all your advocacy efforts. We greatly appreciate it.
Catharine Conner
Milliron & Goodman, LLC
Government Relations
200 North 3rd St - Suite 1500
Harrisburg, PA 17101
O: 717.232.5322
C: 717.649.4908
