In the episode, “How Compliance Issues Affect Health Care Transactions” Jana Kolarik, a Foley Partner, and co-host Angie Caldwell, PYA Consulting Principal and Tampa Managing Principal, interview Michael Ramey, PYA Managing Principal of Strategic & Transaction Solutions, and Roger Strode, Partner in Foley’s Health Care and Transactional Practice Groups, about compliance issues that impact health care transactions and the value of due diligence.
Ramey explains compliance issues can cause buyers to walk away from a purchase because of the uncertainty about the penalties associated with the issues. “We’ve seen penalties can be pretty extreme….[I]n the hospital segment, I’ve seen penalties completely cripple a hospital.” He also points out that the timelines associated with penalties can be very long, giving another reason transactions can fail.
Ramey and Strode further discuss prevalent compliance issues. Strode explains issues most often are associated with physicians, billing, and coding, and Stark Law and other regulations make compliance highly complicated. Ramey adds that real estate contracts and information technology security compliance are prevalent issues, as well, and enterprise-wide due diligence early in the transaction process is essential to see the full scope of compliance.
The Let’s Talk Compliance podcast series is for healthcare leaders and compliance professionals, as well as providers, suppliers, vendors, and others in the healthcare industry. In each episode, a Foley & Lardner attorney and a PYA advisor discuss a trending compliance topic and address questions they hear most often from clients.
The podcast is part of Foley & Lardner’s Health Care Law Today series. Listeners can subscribe to both series on Apple Podcasts, Spotify, or their preferred podcast app. All episodes of Let’s Talk Compliance also can be found on the PYA website.
If you would like assistance with strategic and transaction solutions, assessment of compliance programs, or any other matter related to compliance, regulatory requirements, strategy, or transactions, one of our executives would be happy to assist. You may email them below or call (800) 270-9629.