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Steps for winning state approval of integration transactions
1McDermott, Will & Emery, Washington, DC, USA.
Abstract:
The powers attorneys general have to regulate integration transactions between for-profit and not-for-profit organizations may differ from state to state, but regardless of location, health-care executives planning integration transactions should take steps to help ensure that such transactions receive state approval. Executives should familiarize themselves with the attorney general's approval process in their state, be prepared to defend the valuation of any not-for-profit assets to be transferred as part of an integration transaction, review articles of incorporation and state statutes to make certain that the proposed transfer of assets is permissible, and ensure that the process for securing board approval to proceed with the integration is free from conflicts of interest.
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