By: Jeff Cohen
Healthcare businesses are bought and sold every day! Though sophisticated people are fully aware of the risk difference between an entity sale and an asset sale, some do not understand the lingering nature of Medicare related liability.
When a legal entity (company, limited liability company, whatever) is bought, the liabilities of that entity are often assumed by the buyer. This is because buyers that purchase selling healthcare entities like the idea of keeping both term managed care agreements and the Medicare provider number intact. Keeping them intact can help ensure continual cash flow of the seller, but will also create Medicare liability to the buyer. Continue reading