Health Law Blog - Healthcare Legal Issues

Posts Tagged ‘due diligence’

Compliance Audits in Mergers and Acquisitions

Thursday, May 16th, 2013

Compliance Audits in Mergers and Acquisitions

Compliance Mergers Acquisitions Due DiligenceThere is a current trend in the health care industry toward mergers and acquisitions.  As providers consolidate acquisition issues, such as due diligence, become major issues.  Transitional attorneys are well versed in the routine of transactional due diligence.  Health care and compliance attorneys are often asked to become involved in defining the appropriate scope of health care compliance due diligence in the context of a merger and acquisition transaction.

The structure of the contemplated transaction has a major impact on the scope of due diligence that should be performed regarding health care compliance areas.  Where the Medicare provider number of the acquired organization is part of the deal, robust audits of billing and compliance practices is necessary to identify any potential false billing or overpayment claims.  In this type of transaction, the acquiring provider will certainly have successor liability for all matters that took place (or did not take place) with respect to the provider number prior to closing.

Even when the provider number is not acquired, the transaction needs to be structured in a way that minimizes exposure to successor liability under state law.  Even when structured in a manner that insulates a provider from past liabilities, as a practical matter, the past methods of doing things will be carried on the acquiring entity following the acquisition.  Billing practices will carry forward for some period of time.  Referral relationships may exist without a written agreement being in place as required under state law exceptions or safe harbor rules.  It will take some period of time to identify specific problems that might be carried forward into the new organization, even under the most robust compliance program.

In any event, the compliance perspective should be involved to provide insight as part of every health care acquisition.  The scope of compliance needs to be appropriately scaled to reduce potential risk exposure to the acquiring organizations.

For more information regarding health care mergers and acquisitions, contact John Fisher, II at Ruder Ware.

Compliance Issues In Mergers and Acquisitions – Compliance Institute 2013

Wednesday, October 31st, 2012

Compliance Issues In Health Care Mergers and Acquisitions
John Fisher to Speak at HCCA National Compliance Institute

Medical Practice Compliance ProgramsThe Health Care Compliance Association (HCCA) has released the program and speakers for its annual Compliance Institute that is being held at Gaylord National National Harbor, MD (DC Metro Area) on April 23 and 24, 2013. John Fisher will be presenting at the national conference on the topic “Compliance Issues in Mergers and Acquisitions.” John is a member of the Ruder Ware Health Care Industry Focus Team. He is certified in Health Care Compliance and in Corporate Compliance and Ethics. John began his practice in representing health care providers in 1985. John has a depth of experience in health care transactions, provider integration and mergers and acquisitions involving health care providers. He has been involved in provider integration since the early 1990s.

HCCA is a national association of health care compliance professionals. HCCA provides the following description of John’s presentation:

Compliance Issues in Mergers and Acquisitions
John Fisher II, Health Care & Compliance Counsel, Ruder Ware, LLSC
– When will you be liable for the liabilities of an entity you are acquiring?
– What is the appropriate role of compliance in the transaction?
– Defining the scope of due diligence and addressing compliance issues

A complete description of the Compliance Institute program is included on the HCCA web site at the following link: HCCA Compliance Institute 2013

John H. Fisher

Health Care Counsel
Ruder Ware, L.L.S.C.
500 First Street, Suite 8000
P.O. Box 8050
Wausau, WI 54402-8050

Tel 715.845.4336
Fax 715.845.2718

Ruder Ware is a member of Meritas Law Firms Worldwide

Search
Disclaimer
The Health Care Law Blog is made available by Ruder Ware for educational purposes and to provide a general understanding of some of the legal issues relating to the health care industry. This site does not provide specific legal advice and you should not use the information contained on this site to address your specific situation without consulting with legal counsel that is well versed in health care law and regulation. By using the Health Care Law Blog site you understand that there is no attorney client relationship between you and Ruder Ware or any individual attorney. Postings on this site do not represent the views of our clients. This site links to other information resources on the Internet; these sites are not endorsed or supported by Ruder Ware, and Ruder Ware does not vouch for the accuracy or reliability of any information provided therein. For further information regarding the articles on this blog, contact Ruder Ware through our primary website.