Considerations for Purchasing a Healthcare Business
- Litigation. Healthcare facilities are not immune from being sued. Whether clients or employees sue them, healthcare facilities often find themselves defending against suit. Knowing whether there is any pending litigation, or the outcomes of past lawsuits can ensure you are aware of any liabilities you may inherit after purchase.
- Medical Director. A medical (or clinic) director is vital to the success of a healthcare facility as they oversee the quality of care provided to the patients in the facility. A key consideration is whether the current medical director will continue employment or leave the facility after the sale. Before purchase, determine whether the current director aligns with your vision. The current state of the facility can provide insight into the leadership style of the current medical director. Furthermore, medical directors can serve in that capacity for multiple facilities. During the interview process, vet any candidate for the medical director position on their leadership ability, other commitments, and intended time commitment to your facility.
- Certified Public Accountant (CPA). A purchaser should avoid using their local CPA to create the Proof of Financial Ability to Operate. AHCA requires proof of financial ability to operate for all applications, including a Change of Ownership application. Local CPAs are not familiar with AHCA’s requirements. Our firm has CPA’s who are familiar with the process and can prepare financial projections that comply AHCA’s rules and requirements.
- Attorney. Having an attorney with experience working with AHCA will make the licensure or change of ownership process more efficient. Our legal experts assist business owners with the tedious and complex process of preparing the necessary legal documents for all applications. This firm can also help with drafting and reviewing the purchase agreement, medical director’s contract, property sales agreement, leasing agreement, and other contractual agreements to proactively avoid potential AHCA deficiencies, claims, or lawsuits. Further, if your application was denied by AHCA, our experienced attorneys can respond to a Notice of Intent to Deny and assist with correcting cited deficiencies in the notice.
Seek Experienced Lawyers to Guide You Through the CHOW Process
We always recommend seeking the counsel of an experienced attorney/accountant to examine the financial statements of a business or facility that you are seeking to purchase. Our team of legal experts understands the unique financial details of a healthcare business. In fact, we often work side by side with our clients’ accountants to provide a comprehensive approach to purchasing a healthcare business or facility.
Our team has assisted prospective business owners with this often tedious and complicated process. We are experienced in working directly with AHCA requirements, preparing the necessary documents, and meeting the timelines required. We will guide you throughout each step of this rigorous process and provide comprehensive advice along the way.