Ryan K. Cochran, Member of the Firm in the Health Care & Life Sciences practice, in the firm’s Nashville office, co-authored an article in AHLA’s Business Law and Governance Practice Group, titled “Why You Should Learn the Playbook: Know the Game Plan for Distressed Acquisitions and Divestitures, Part Four—Regulatory Compliance and Related Issues in Distressed Health Care Transactions.” (Read the full version – subscription required.)
This article follows a three-part series on distressed acquisitions and divestitures and focuses on health care-specific issues. In prior articles, the authors provided an overview of distressed sales, reported on a sampling of market terms and timelines in court-approved sales, and discussed seller and purchaser considerations in negotiating sale terms related to distressed sales. The regulatory compliance and approval issues that arise in healthy and distressed health care transactions are similar. However, in a distressed transaction, timing and liquidity constraints are at the forefront, necessitating tailored solutions and planning. This article explains considerations unique to distressed health care transactions and describes ways in which transaction counterparties may address them.
Following is an excerpt (see below to download the full version in PDF format):
As health care practitioners know, health care transaction notice and review laws have been on the rise. In general, bankruptcy and receivership proceedings do not circumvent or even shortcut state or federal regulatory requirements for health care transactions, including with respect to licensure and change of ownership. Insolvency practitioners typically work with their health care counterparts to understand the applicable regulatory notice and approval requirements, processes, and timelines. However, there are certain unique considerations underlying the regulatory approval process in a distressed health care transaction.
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