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Related Experiment Videos

How to divest acquired physician practices.

P K O'Hare1

  • 1McDermott, Will & Emery, Washington, DC, USA.

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|May 27, 1999
PubMed
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Integrated delivery systems (IDS) must carefully divest physician practices. Key considerations include legal compliance, asset management, and maintaining positive relationships during practice divestiture.

Area of Science:

  • Healthcare Management
  • Health Law

Background:

  • Integrated delivery systems (IDS) often acquire physician practices.
  • Divesting these practices presents unique management and legal challenges.

Purpose of the Study:

  • To outline critical considerations for integrated delivery systems (IDS) when divesting physician practices.
  • To ensure a smooth and legally compliant transaction process.

Main Methods:

  • Review of legal and management best practices for healthcare transactions.
  • Analysis of potential pitfalls in physician practice divestiture.

Main Results:

  • Successful divestiture requires careful evaluation of reasons for sale, legal contract termination issues, asset and facility handling, non-compete clauses, medical record access, and termination agreement clauses.

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  • Maintaining a positive relationship with the divested practice while ensuring legal compliance is paramount.

    • Conclusions:

    • Strategic planning and legal due diligence are essential for integrated delivery systems (IDS) managing physician practice divestiture.
    • Proactive management of all transaction aspects minimizes legal risks and preserves professional relationships.