Because of the fluidity in the regulatory environment of the health care industry, it is critical to understand the unique challenges that come with owning and operating a health care business. Even a long-time practice owner may be unaware of every legal nuance that surrounds the most widely regulated industry in the U.S. and, therefore, can open the practice to legal complications.
As a result of the variety of risks that coincide with purchasing, operating, or selling a business, it’s important that the interests of you and your business are best protected throughout the entire transactional process. From the start-up documents needed to establish a health care entity to the legal processes of creating management companies, such as Management Services Organizations, set your sights on working with a team who customizes a plan to fit your goals.
Business opportunities within the health care industry come with their own realm of challenges, which can start as early as the purchasing phase. To start, you’ll want a due diligence review before moving forward with the purchase, acquisition, or merge of a business. Why? Because it can be the first step to catching any red flags, which, in turn, protects you and your company from potential administrative, civil, and criminal liabilities. Aside from conducting due diligence, certain documents need to be created and processes need to be understood. These can include, but are not limited to:
To get your business up-and-running, various start-up documents are needed, which encompass a wide range of aspects. If you’ve formed a new business, you’ll need Articles of Incorporation, while notifications to governmental agencies are required when the ownership of an existing company changes hands. There are also documents required to comply with 26 U.S. Code § 1445 when real estate is purchased on behalf of a business. Examples of additional forms include:
Running a business often means working with outside vendors. Whether you’re hiring a marketing company or merging with another organization, you want to make sure the interests of your business are being kept at the forefront. Especially with the strict regulations surrounding the healthcare industry, it’s important that federal statutes and laws—such as Anti-Kickback and Physician Self-Referral—are being complied with. Below are some of the contractual documents your team needs to prepare for:
After your business is all set up externally, it’s time for you to focus on the internal aspects of your practice. From shareholder agreements to bylaws, there are specific documents pertaining to internal practice management which ensure that everything is running smoothly. These documents also allow for transparency within the business for everyone from executive board members to entry-level employees. Examples of the documentation you will need drafted include:
If you find that the information above was overwhelming, don’t worry. Our team of health care business contract attorneys has extensive knowledge of health care law, and passion for seeing our clients succeed. We’re ready to provide you with legal and compliance services that cover all areas of corporate transactions.
"*" indicates required fields
After a RAC audit decision denied reimbursement for varicose vein procedures, our healthcare compliance attorneys helped a Michigan heart and vascular specialist practice draft a successful appeal.
Our healthcare compliance lawyers were able to successfully negotiate payment for outstanding claims and receivables at approximately 50%, plus a fixed daily rate deal for patients thereafter.
In general, a physician or other licensed healthcare provider is prohibited from making any referral to a person or entity that bills Medicare or Medicaid programs, and with which the physician has a financial interest. And there are hefty penalties for doing so.
New healthcare business ventures can easily, sometimes unknowingly run afoul of Stark Law, Anti-Kickback, and the False Claims Act. Here’s how to be sure you are being fully compliant and not violating any state and federal laws.
Here’s why it’s important to take a closer look at whether your medical practice is staying compliant — and not engaging in kickbacks in health care.
Michigan OFFICE
1441 W Long Lake Road
Suite 310
Troy, MI 48098
T. 248.644.6326
F. 248.644.6324
CALIFORNIA OFFICE
5250 Lankershim Blvd.
Ste. 500
North Hollywood, CA 91601
T. (818) 287-0576
FLORIDA OFFICES
6841 Energy Court
Suite 120
Sarasota, FL 34240
T. 941.893.3449
701 Waterford Way
Suite 340
Miami, FL 33126
T. 305.712.7177
Practice Areas
Attorneys
© CHAPMAN LAW GROUP. ALL RIGHTS RESERVED
