A Complex Deal Helps a Hospital Expand
Our attorneys serve clients in every sector of the health care industry, from major hospitals, health centers, large multi-specialty groups and nursing homes to individual physicians and other health care practitioners. In recent years, we have seen a continuing trend toward consolidation, particularly the acquisition of physician practices by hospitals, as providers face increasing costs, decreasing reimbursement rates and regulatory challenges. Our health care attorneys have helped both hospitals and physician groups handle the complexities of these transactions.In 2011, for example, we assisted a hospital in acquiring a large specialty practice, a transaction that involved assigning numerous contracts, leases and other agreements; negotiating management agreements; and ensuring that financial terms conformed to strict regulatory requirements. In addition, in order to qualify for provider-based status, we structured the transaction to satisfy the provider-based requirements of the Centers for Medicare and Medicaid Services (CMS) for the testing and imaging portion of the practice, although the physicians themselves remained in private practice but under contract to the hospital. While this was a particularly complicated aspect of the acquisition, we successfully closed the transaction and satisfied all regulatory requirements. The practice is now functioning effectively as an important part of a large integrated health care system.