On Tuesday, December 15, Matthias Kleinsasser presented at the Austin Bar Association’s Health Law Section meeting. His presentation, titled “The Basics of the False Claims Act, STARK, and Anti-Kickback Statute and Recent Regulatory Developments,” provided a litigator’s perspective on the basics of the False Claims Act, STARK, and the Anti-Kickback Statute, along with a
Healthcare M&A in a Post-PPP World: Time to Look that Gift Horse in the Mouth
In the wake of the initial months of the COVID-19 pandemic, many practitioners have started to see a notable uptick in healthcare M&A activity through the third quarter of 2020. Such activity spans from consolidation transactions in certain medical practice segments, accretive acquisitions in the hospice and home health space, business combinations to expand telemedicine offerings, and a growing interest in value-add healthcare real estate opportunities. In most cases, the seller parties that have weathered the COVID-19 storm have done in so in part through the lifelines of funding provided by the U.S. Small Business Administration (SBA) through the CARES Act, and in particular Paycheck Protection Program (PPP) loans. However, as the healthcare M&A deals initially inked in Q3-2020 now shift to closing mode in Q4-2020, these PPP loans are presenting new challenges for both sellers and buyers. The following highlights some of the key issues.
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SBA Procedural Notice Summary – Changes of Ownership
In order to clarify the required procedures for changes of ownership of entities that have received Paycheck Protection Program (“PPP”) funds, the Small Business Administration (“SBA”), on October 2, 2020, released a Procedural Notice. Specifically, the Procedural Notice addresses the procedures companies with outstanding PPP loans must follow when undergoing a change of ownership, including mergers, equity or asset acquisitions, or ownership restructurings.[1]
Prior to the October 2, 2020 Procedural Notice, SBA loans typically required prior SBA approval for any transaction involving a change of ownership, regardless of the percentage change. Without further guidance from the SBA, PPP lenders have been cautious in granting their consent to their PPP borrowers’ change of ownership transactions without prior SBA approval in order to avoid potential defaults and forego forgiveness rights of the PPP loan.
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Understanding the Basics of Cooperation Credit in False Claims Act Matters
It’s no secret that the Department of Justice has made the False Claims Act (“FCA”) a priority for years. Last month, we discussed why regulatory changes in response to Covid-19 (e.g., STARK waivers) could provide additional bases for the government to bring FCA cases. This post addresses the basics of cooperation credit for defendants who cooperate with the Department of Justice during an FCA investigation.
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Do Covid-19 Regulatory Changes Pose an Increased Risk of Fraud and Abuse Liability for Healthcare Providers?
Regulatory developments—such as the Stark Law blanket waivers and the OIG’s enforcement deferral for use of the waivers—have helped healthcare providers during the COVID-19 crisis, but healthcare fraud remains a prime target of the DOJ and the OIG (in addition to state regulators). Between October 2018 and September 2019, the DOJ obtained over $3 billion in judgments and settlements from fraud claims, a substantial portion of those claims relating to healthcare fraud.[1] The significant increase in qui tam litigation since the 1980s is also notable.[2] So what fraud and abuse actions could regulators pursue in COVID-19’s shadow?
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COVID Recovery – Providing Quality Healthcare and Staying Ahead of the COVID-19 Curve—Complicated!
In this on demand webinar Shareholder Kevin Wood will cover how medical practices’ can stay ahead of the curve in the COVID environment. This presentation is from the MGMA Texas virtual Annual Meeting that took place September 8-11.
Healthy IT Contracts: HIPAA and Beyond
In this on demand webinar Shareholder Corinne Smith will cover the importance of medical practice IT contracts. This presentation is from the MGMA Texas virtual Annual Meeting that took place September 8-11.
Physician Non-Compete Agreements and the Anti-Kickback and Physician Self-Referral Laws
It is common practice for a hospital to require a physician to sign a non-compete agreement whenever the hospital employs the physician or acquires the physician’s medical practice. In certain respects, that is to be expected. Non-compete agreements are a common feature in employment agreements and business acquisition documents across all industries and therefore it