Due diligence and physician financial arrangements

9 minute read

Conducting due diligence for physician and provider compensation arrangements during a healthcare transaction is critical for the acquirer. Appropriate due diligence is necessary, regardless of whether the transaction is a stock or asset purchase. If inappropriate financial arrangements exist and continue post-transaction, the acquirer will assume liability under both acquisition scenarios. If the transaction is a stock purchase, the acquirer will literally “step into the seller’s shoes” and potentially assume all pre-transaction liability.

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