Surgical practices were previously granted certain exceptions to the rules governing Ambulatory Surgery Centers (ASCs), including an exemption from the 2.9% assessment on gross receipts. However, Governor Murphy recently signed the Fiscal Year 2026 Budget into law, simultaneously with numerous other bills, including the “Healthcare Finance Enhancement Act” (the Act). The Act subjects surgical practices that are required to become licensed as ASCs to the “ambulatory care facility assessment” (Assessment) starting in Fiscal Year 2026, but reduces the rate to 2.5% for all facilities.
Surgical practices that are required to become licensed as ASCs are attractive to buyers due to the ability of owners to relocate and combine these single room centers, which bypasses the existing moratorium on new ASCs. Potential buyers and sellers now need to consider the Assessment when engaging in transactions. In addition, all surgical practices that have become and are required to become licensed as ASCs will need to become familiar with the reporting process associated with the Assessment, as well as budget accordingly.
If you have any questions, please contact the author, the Garfunkel Wild attorney with whom you regularly work, or contact us at [email protected].
