One old cliché is that physicians are not good business people. And if that’s true, it’s only because they have devoted all their time to being very good at something else, deploying their skills to save and help people. They can no more be expected to be business experts than they can expect to be tax experts. Which is exactly why they need not only accountants, but also seasoned medical business attorneys.
While a corporate lawyer is effective at helping with purchase and sale transactions, buy ins and employment agreements, only a seasoned medical business attorney will know important things like—
Positioning a healthcare business acquisition as a stock purchase will not allow the buyer to escape Medicare risk, but is the preferred way to ensure ongoing cash flow in the presence of managed care agreements;
- Timing a transaction so that licenses can be obtained (before the transaction closes);
- There are certain specific triggering events allowing a healthcare business to eject an owner that should be included in every healthcare business shareholder agreement or operating agreement;
- How to assess serious risks that accountants cannot assess merely by looking at financials; or
- The strength or volatility of a certain line of business in a healthcare business.
Seasoned medical business attorneys are essentially healthcare business insiders. Over decades, they will have seen and done nearly everything that can be done, and many times over. A seasoned medical business attorney knows not just healthcare regulations, but also what works. They are invaluable advisors to their clients, many of whom are either entering a business endeavor, trying to resolve a problem or looking for a competitive advantage.
Medical business attorneys are a rare breed because they live in a world where the rules of the road are often changing and often not crystal clear. Which is why seasoned medical business attorneys routinely educate clients about the laws, the options and the risks of each option (including how regulators and law enforcement interpret them at a given point in time). And healthcare professionals and businesses should expect nothing less!