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Seven Things To Know When You Receive A Notice Of Investigation From The Department Of Health

Mergers and Acquisitions

An alliance or joining of two corporations or business entities will often be structured as either an acquisition or a merger. An acquisition can be an asset purchase, in which the buyer purchases the seller’s assets without any of its liabilities, or a stock purchase, in which the buyer purchases the business’s stock and takes over the whole business (including any liabilities). In a health care entity, the type of transaction is extremely important because of unique state and federal laws on such issues as ownership of patient medical records, liabilities of Medicare and Medicaid providers to the government, special licensing requirements, medical malpractice liability, and other similar matters. A merger, or the joinder of two business, shares many characteristics of both the asset purchase and the stock purchase, but at the end of the transaction there is only one business entity remaining.