Steering Two Healthcare Entities Through a Merger and Sale with Regulatory Approval
We advised a health plan and independent practice association (IPA) based in Northern California on their merger and sale to a rapidly expanding population health management company headquartered in Nevada.
We guided our client through multiple transactions in order to combine strategic corporate transactional structures while steering clear of significant regulatory risks at both the federal and state levels. Our work included advising on tax, employment and creditor rights issues. We also secured regulatory approval from the California Department of Managed Health Care.
Our health plan client was licensed under the California Knox-Keene Health Care Service Plan Act of 1975 and contracted directly with major health plans in California, serving more than 10,500 Medicare Advantage members in San Joaquin County. The IPA had more than 400 physicians and other healthcare providers contracted under the health plan’s provider network at the time of sale. By purchasing these entities, the population health management company was able to grow its membership and contribute its expertise in improving patient outcomes while reducing costs to California’s Central Valley and beyond.