False Claims Act Insights - Reality Checks: How to Approach Healthcare Transactions Without Triggering FCA Liability

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Host Jonathan Porter is joined by Husch Blackwell partner Hal Katz to discuss healthcare transactions in the context of the False Claims Act (FCA) and other regulatory frameworks applicable to the healthcare industry. As evidenced by the recent torrent of state- and federal-level laws aimed at healthcare, no industry is asked by its regulators to jump through so many hoops as healthcare when it comes to acquisitions, business combinations, and joint ventures. In this episode, Jonathan and Hal explore how healthcare business leaders See more +
Host Jonathan Porter is joined by Husch Blackwell partner Hal Katz to discuss healthcare transactions in the context of the False Claims Act (FCA) and other regulatory frameworks applicable to the healthcare industry. As evidenced by the recent torrent of state- and federal-level laws aimed at healthcare, no industry is asked by its regulators to jump through so many hoops as healthcare when it comes to acquisitions, business combinations, and joint ventures. In this episode, Jonathan and Hal explore how healthcare business leaders can approach transactions without triggering an avalanche of legal liability.

Our discussion begins with a brief primer on how the Stark Law and Anti-Kickback Statute intersect with the FCA. Jonathan and Hal then apply this framework to healthcare transactions, reviewing and building on concepts from an August 2024 article they published in Healthcare Business Today, including scenarios frequently encountered as the healthcare industry continues to consolidate and reconfigure.

The discussion then dives into a few specific lawsuits and enforcement actions to illustrate how healthcare transactions are a species all to their own with unique risk profiles and regulatory obstacles. Jonathan and Hal wrap up the episode by providing some practical suggestions for healthcare leaders who are engaged in or contemplating transactions, especially around calculating and documenting the valuation of businesses and managing communications between buyers and sellers. See less -

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