§453 · Sell Surgery Center Defer Capital Gains

Selling Your Surgery Center (ASC) — Defer the Tax Across Years

ASC consolidators pay aggressively for established centers. USPI (Tenet), Surgery Partners, SCA Health (Optum), AmSurg, Surgical Care Affiliates, HCA Healthcare, Compass Surgical Partners — most paying 6-10x EBITDA for multi-OR centers with strong case volume. A $2M EBITDA ASC = $12M-$20M sale.

§453 Mechanic — How the Money Flows

Buyer cash → Assignment Co. → A-rated carrier → You, on schedule

BUYER pays full cash at closing ASSIGNMENT CO. qualified entity, regulated purchases annuity A-RATED CARRIER A-Rated Carrier A+ rated · A.M. Best SELLER (you) paid on chosen 5-30 yr schedule Closing day — one wire, one assignment Gain recognized proportionally each year per IRC §453 (Treas. Reg. §15A.453-1)

Lump sum: federal + state taxes eat $4M-$8M. §453 defers the goodwill portion.

The math — $10M ASC sale

StateState rateLump-sum tax10-yr §453 taxDelta
California13.3% + 1%~$4.11M (41%)~$3.30M (33%)$810K
New York10.9%~$3.85M~$3.09M$760K
New Jersey10.75%~$3.83M~$3.08M$750K
Texas / Florida / Tennessee / Nevada / WA / WY0%~$2.83M~$2.27M$560K

Assumes $10M sale, 65% goodwill, 25% equipment (high — surgical suites, lasers, imaging, autoclaves), 10% supplies.

ASC-specific tax wrinkles

  1. CON (Certificate of Need) states — license transferability affects buyer pool and timing. CON states: VA, NC, GA, NY, NJ, IL, KY, MD, MS, AL, others. Non-CON states have easier transfers.
  2. Equipment §1245 recapture — heavy exposure. Surgical suite equipment (OR tables, lasers, anesthesia machines), imaging (C-arms, fluoroscopy), autoclaves, monitors — all depreciated under MACRS, recapture year one. Allocate carefully.
  3. Physician ownership / safe harbor compliance — ASC physician-owners under federal Anti-Kickback Statute safe harbor (42 CFR 1001.952(r)). Required structure remains intact post-sale.
  4. Real estate carve-out — if practice owns the building, separate sale-leaseback or §453 structure on the real estate alongside the operating company §453.
  5. Service contracts (anesthesia, pathology, sterilization) — assignability matters.
  6. Medicare and commercial insurance contracts — provider number transfers affect timing.
  7. Out-of-network billing wind-down — affects valuation but not §453 mechanic.

When this fits

  • $3M+ sale (carrier minimums on deferred portion)
  • Multi-OR center with established case volume
  • Sophisticated consolidator buyer (USPI, Surgery Partners, SCA — all have done §453)
  • Physician-owner exiting (not 100% rollover)

When it doesn't

  • Mostly equipment sale
  • Solo OR with minimal goodwill
  • Sale under $2M

How I work

Hans Goldstein, IRC §453 specialist. an A-rated Fortune 500 carrier / an A-rated Fortune 500 carrier / an A-rated Fortune 500 carrier / an A-rated Fortune 500 carrier — 50 states. Free fit-check.

Frequently asked

Q: I'm a partner in the ASC. Can I structure my partner buyout via §453? A: Yes if the buyout is a redemption of your partnership interest. Cleaner if structured as sale to incoming partner.

Q: My ASC has CON. Does that complicate the §453? A: Doesn't affect §453 mechanic, but CON transfer timing affects closing date. Plan §453 paperwork around the CON approval timeline.

Q: Surgery Partners — do they paper §453? A: Yes, routinely.

Hans Goldstein, NPN 20602398

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📞 Hans Goldstein · 615-808-9731 · CA Insurance License #4322192 · Independent §453 specialist · Goldstein & Co. LLC

Educational. Not tax or legal advice.

Run your specific numbers

The calculator runs your sale through real 2026 federal + state tax brackets and shows §453 savings vs lump sum side-by-side.

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