What to Worry About When Selling Lab Outreach Businesses


Paul A. Gomez, a Member of the Firm in the Health Care and Life Sciences and Corporate Services practices, in the firm’s Los Angeles office, authored an article in Law360 titled “What to Worry About When Selling Lab Outreach Businesses.” (Read the full version – subscription required.)

Following is an excerpt:

Sales of laboratory outreach businesses by hospitals can save millions of dollars over time in operational costs, provide cash from the sale of the business assets and make possible the repurposing of scarce resources to core service areas. This may be especially important now as many health systems, hospitals and other health care providers embark on a number of strategic initiatives and affiliations in order to better position themselves to compete and thrive in the rapidly developing health care payment and regulatory landscape. Hospitals and health systems will need to balance potential advantages of such a sale with potential drawbacks, including, but not limited to potential loss of employees and experienced staff members and loss of direct control over the quality of affected laboratory services. Notwithstanding the challenges, all of this may lead to many health systems and hospitals giving serious consideration to sale of their respective laboratory outreach businesses.