nepe-37-01-06 Page 19 PDF Created: 2018-2-23: 11:12:AM Feature Compliance Diligence in Buy-Sell Transactions Uncover and address risks to save the deal By Alice Harris, JD, Jennifer Malinovsky, JD, and Ed White, JD Due diligence can play a critical role in minimizing risk any healthcare purchase and sale during any buy-sell transaction, but is even more important transactions are intended to help providers in a healthcare transaction. An array of complex consider- achieve economies of scale or otherwise position themselves to pursue value- ations are at the forefront of a healthcare transaction that M based reimbursement and other goals. Increased quality, are not present in other industries. A lack of attention to lower costs and improved access to care are required to compliance due diligence during the transaction, espe- successfully move from fee for service payments to the new cially by the buyer, can jeopardize the viability of the deal. reimbursement models. These transactions cover a wide spectrum in the healthcare industry, including hospital mergers and consolidations, health system acquisitions of physician practices and Alice Harris is a partner in the Columbia, SC, office of Nelson Mullins ancillary providers and suppliers, physician practice joint Riley & Scarborough LLP. She regularly ventures, and private equity investments in healthcare assists healthcare systems, post-acute provider groups. care providers, physicians, and other healthcare providers with compliance Critical role of due diligence and regulatory issues. Alice can be Through due diligence, a buyer can gather information reached at (803) 255-9487 and Alice. about a seller and evaluate the information within the
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