Excela Health sues to obtain tax-exempt status for surgery center: 5 things to know

Excela Health is suing Westmorland County, arguing its Laurel Surgical Center should be removed from tax rolls, according to a Trib Live report.

Here are five things to know:

1. The surgery center is part of Excela Health Latrobe Hospital, which is a non-profit, and Excela argues the facility should be tax exempt under state law. The center is licensed as an ambulatory care center that was previously owned by a for-profit private practice; Excela bought the facility in 2013 for $11 million.

2. The surgery center is a 16,000-square-foot facility across four acres of land.

3. Latrobe Area Hospital owns 59 properties in Westmoreland County and 35 have tax exemptions under the hospital system's nonprofit umbrella. However, the Board of Assessment Appeals denied the hospital's request for tax exemption in January and the hospital filed the lawsuit in February.

4. Taxes on the surgery center's property this year were $36,946; county officials feel the hospital should continue paying the taxes because the surgery center competes with for-profit businesses whereas the hospital is designed for charitable care.

5. The appeals hearings will go forward with a status update on Excela's case scheduled for mid-April.

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