Comprehensive Legal Support For Practice Sales, Purchases And Private Equity Transactions
Sansweet, Dearden and Burke, Ltd., has represented numerous physicians, dentists and other health care professionals in connection with the purchase or sale of health care and dental practices. Our firm has extensive experience with sales to hospitals, health care systems, nonprofit and for-profit companies, as well as to other health care practitioners. SDB attorneys have represented both the sellers and the purchasers in these transactions. In addition, our firm assists with the negotiation of leases or the sale of any related real estate. Our services include:
- Negotiating and drafting practice acquisition documents
- Conducting due diligence review
- Preparing employment agreements
- Evaluating the economic arrangements
- Advising clients on the impact of health care regulatory issues, such the Stark Law, the Anti-Kickback Statute, private inurement and corporate practice of medicine
- Analyzing the tax ramifications of the transaction
Private Equity Transactions
Private equity (PE) investment in health care practices has grown significantly, offering physicians and practice owners new opportunities, along with unique challenges. At SDB, we guide clients through every stage of these complex transactions. We address key considerations such as:
- Investment models: PE firms often use platform and add-on strategies to consolidate regional practices.
- Selling to PE vs. strategic buyers: PE transactions typically involve long-term partnerships, while strategic buyers may focus on integration and operational control.
- Regulatory compliance: PE-backed entities face heightened scrutiny under the Stark Law, the Anti-Kickback Statute and other regulations.
- Post-transaction governance: PE firms expect management service agreements and board oversight structures that preserve investor control.
- Valuation methodologies: PE firms frequently employ Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) multiples.
- Long-term implications: Physicians should consider autonomy, compensation models and exit strategies before committing.
Transaction Structure Options
Our lawyers provide guidance on:
- Asset sales vs. stock/membership interest purchases
- Employment and management service agreements
- Real estate considerations in practice transactions
- Strategies for optimizing transaction structure based on practice type
FAQ About This Nuanced Aspect Of Health Care Law
Below are some common questions we address relating to these transactions.
What are the key legal considerations when selling a medical practice to a hospital or health care system?
Compliance with the Stark Law, the Anti-Kickback Statute and fair market value standards is critical. Employment agreements and restrictive covenants also require careful review.
How do health care regulatory laws like Stark and Anti-Kickback impact practice sales and purchases?
These laws govern financial relationships and referral arrangements. Violations can result in severe penalties, making regulatory compliance a top priority in every transaction.
Let Us Help Make Your Transaction Seamless
If you are pursuing a transaction involving a health care practice or business, our experienced health law attorneys can protect your interests and guide you through every detail. Contact us today at 610-936-6889 today to start the conversation.