The Speaker of the House Brenan Sharkey in the Connecticut state legislature made comments on the 6 percent tax recently applied to surgery centers in the state to illustrate mounting concerns.
Here are five key notes:
1. The 6 percent tax took effect Oct. 1 and was part of the state's final budget deal.
2. The new tax could have an effective tax rate of nearly 30 percent on ASCs when added to existing sales and use, property and state income taxes.
3. There are more than 210,000 surgical procedures performed at ASCs in the state.
4. The Connecticut Citizens for Affordable Health Care conducted a poll showing 18 percent of voters disapproved of the tax.
5. The tax could force around 25 percent of the state's ASCs to operate at a financial loss.
"ASCs are physician-owned small businesses that invest in the local community, support economic growth and employ highly skilled healthcare workers," said North Haven Surgery Center Administrator Sue Bojka. "Due to the new ASC tax included in the budget, estimates predict 25 to 30 percent of our state's ASCs will begin operating at a loss, which significantly threatens our operations and contributions to the Connecticut economy, and more importantly the quality care we provide to hundreds of thousands of patients statewide."
Speaker Sharkey addressed the Commission on Economic Competitiveness with the issues facing this tax and other concerns with the budget.