Well-planned due diligence can protect buyers of healthcare entities.
Conducting a thorough due diligence is essential for any buyer that plans to acquire a healthcare entity, including a hospital or a group practice, because it provides an opportunity for the buyer to uncover billing or other fraud-and-abuse problems within the selling organization. These problems can be significant, because the buyer can be held liable for undiscovered billing problems that result in investigation, prosecution, and penalties. It is important for the buyer to ascertain who bears the liability of fraud-and-abuse violations and attempt to protect itself from assuming such liability.
Doty
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Health Law Department, Montgomery, McCracken, Walker & Rhoads, LLP, Philadelphia, Pennsylvania, USA.
Campbell
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D005375:Financial Audit; D005607:Fraud / Q000331:legislation & jurisprudence / Q000517:prevention & control*; D019983:Guideline Adherence; D006273:Health Facility Merger / Q000191:economics / Q000331:legislation & jurisprudence*; D006748:Hospital Departments / Q000191:economics; D016365:Liability, Legal / Q000191:economics; D020443:Practice Valuation and Purchase / Q000191:economics / Q000331:legislation & jurisprudence*; D012308:Risk Management; D014481:United States