Acquisition and Sale of Institutions and Physician Practices.

The sale or purchase of a business in any field can be difficult, but changes in ownership for health care businesses can be even more challenging. A change of ownership requires an entity to address the transaction form, transaction structure, employment and compensation issues, property appraisal, and market and commercial value. In addition to these issues, health care businesses must address the compliance of fraud and abuse standards. The complexity of the health care industry requires the services of G2Z Law Group, PLLC, an experienced and zealous health care business advocate.

What are the issues associated with the acquisition or sale of an institution or physician practice?

One area of legal concern is structure of an acquisition or sale of an institution or practice, as it may either be classified as an asset or stock sale. The business structure—a corporation, partnership, limited liability corporation, or sole proprietorship—also impacts the features of the acquisition or sale. In addition to form and structure, health care institutions and practices must consider the legal implications of employment and compensation agreements. It is important to involve legal counsel early in transactional process, as these initial decisions must follow regulatory standards.

Federal and state law govern certain elements of the sale or acquisition of a health care business. The transaction must comply with the federal Anti-Kickback Statute and the Stark Law, which govern compensation and referrals of Medicare or Medicaid patients. These fraud and abuse laws also dictate the type of financial relationship the one entity can have with another and how compensation can be legally structured. For example, the purchase price of a health care business must meet certain market and commercial valuation standards to avoid violating certain fraud and abuse laws.

Medicare is also a significant issue in change of ownership transactions. These transactions require particular submissions to and approvals from the Centers for Medicare & Medicaid Services (CMS). Purchasers must address specific steps to transfer Medicare billing privileges and certificates of waiver. The intricate nature of Medicare regulation makes it necessary to secure legal advice during an acquisition or sale of a health care businesses.

What can G2Z Law Group do for my health care business?

The acquisition or sale of an institution or physician practice can be a challenging undertaking, but the professionals at G2Z Law Group are ready to help you from start to finish. Our firm has provided effective legal counsel for many health care professionals looking to buy or sell, and we can help you confidently complete these ownerships transactions too.

Contact us.

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Washington, DC 20036