Medicare Implications for Providers Following a Change of Ownership

Be aware of the significant risks that can arise under Medicare when a healthcare provider or supplier is involved in an M&A transaction. Under Medicare, a transaction in which a different legal entity becomes the owner and operator of a Medicare-enrolled provider constitutes a change of ownership. In this practice note from Reed Smith partner Karl Thallner, learn how Medicare’s classification of a transaction will determine, in part, the provider’s Medicare enrollment and whether Medicare billing and payment for the provider's services will be interrupted. Review this practice note to understand best practices regarding timing the transaction, performing due diligence, and negotiating provisions of the purchase agreement.

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