Healthcare Business Transactions And Contracts Attorneys In Michigan

The legal rules for healthcare business transactions change quickly and require careful attention. Even a small mistake can ruin a multimillion-dollar deal or lead to costly investigations by government regulators.

Our healthcare business transactions and contracts attorneys at Ottenwess Law help providers with the financial, legal and compliance parts of every deal. We work with you to make sure your business grows on a strong legal foundation.

How We Help Clients In Michigan

Our experienced lawyers provide trustworthy counsel for all types of healthcare business transactions, including:

• Merging or starting a practice: Setting up new medical groups, planning the deal and managing the sale or purchase of medical offices.
• Ownership changes: Helping clients through mergers, partnerships and creating new business entities.
• Doctor and facility contracts: Writing and negotiating agreements between doctors, hospitals and insurance companies.
• Specialized leases and agreements: Setting up contracts for imaging services and managing leases for office space, equipment or staff.
• Audits and legal defense: Giving advice on licensing, government payment rules and employment law. We also represent you if you are accused of fraud or abuse.

By handling the legal work, we help you grow your business with confidence while protecting your professional assets.

Our attorneys look at transactions from both a business and a legal compliance view. Because of our deep roots in the industry, we can spot potential problems with licenses or payments early. This helps you lower your risks before you sign the deal.

Balancing The Stark Law And The Anti-Kickback Statute In Corporate Deals

If your deal involves patient referrals, two main federal laws apply: the Stark Law and the Anti-Kickback Statute (AKS). Both look for financial conflicts of interest, but they have very different rules. Our Michigan lawyers review your payment plans and doctor contracts carefully to keep you compliant and safe from federal investigations.

The Stark Law (Physician Self-Referral Law)

The Stark Law is a strict rule. It bans doctors from referring Medicare or Medicaid patients to medical businesses in which they have a financial interest. This includes services like lab tests, X-rays or physical therapy. A doctor can only make these referrals if the business follows very specific legal exceptions.

Saying you did not mean to break the law is not a valid defense. Violating this law can lead to huge fines for every service billed. You might also have to pay back all the money you collected and could be banned from Medicare and Medicaid programs.

The Anti-Kickback Statute (AKS)

Unlike the Stark Law, the Anti-Kickback Statute (AKS) is a criminal law based on intent. It makes it illegal to offer, pay, ask for or receive any kind of bribe or kickback to get referrals for services paid for by federal healthcare programs.

To protect your transaction, your agreements must fit into “safe harbors.” These are legal rules that protect normal business deals like renting an office. However, the deal must be for a fair price and cannot depend on how many patients are referred.

Because the AKS is a criminal law, failing to follow it is a threat to your freedom and your business. A conviction can result in up to 10 years in prison, fines up to $100,000 and millions of dollars in other penalties.

Protecting Patient Privacy: The Impact Of HIPAA On Business Transfers

Buying a healthcare business always involves transferring records that contain private patient information. Because of this, following HIPAA privacy rules is a very important part of the deal.

During the negotiations, prospective buyers need to see business data, but they cannot look at private patient files without limits. At Ottenwess Law, we help you draft strong privacy and nondisclosure agreements to protect patients early in the process.

After the deal is done, we help you plan a smooth transition. We help make sure your billing systems, digital health records and patient files move safely. This helps you avoid data breaches or government fines.

Managing Michigan’s Strict Certificate Of Need (CON) Requirements

In Michigan, you cannot simply build a new surgery center or buy expensive medical equipment because you have the capital. The state has a “Certificate of Need” (CON) program to control costs and prevent too many facilities from being built.

You must get approval from the Michigan Department of Health and Human Services (MDHHS) if your deal involves:

• Acquiring an existing health facility
• Changing the number of patient beds
• Starting or replacing services like MRI scanners, CT scanners or surgery rooms

Getting this state approval is a necessary step before you can finish a purchase or expansion.

The state also has a yearly spending limit for medical projects, and the current limit is $4,272,500. Any project that costs more than this must go through a formal review. Our team helps you with the application so your project does not get stuck.

Frequently Asked Questions About Michigan Healthcare Transactions

Managing healthcare regulations can be confusing. Below, we answer common questions to help protect your Michigan practice.

What are the key considerations when forming a new medical group or practice in Michigan?

Michigan strictly enforces the Corporate Practice of Medicine doctrine. Standard corporations cannot practice medicine or employ physicians. Instead, you must form a Professional Corporation (P.C.) or a Professional Limited Liability Company (PLLC). State law requires licensed physicians to own 100% of the entity. To include nonlicensed partners, you must set up a Management Services Organization (MSO) to legally split operations.

How can Detroit healthcare businesses protect themselves from fraud and abuse accusations?

Metro Detroit faces high regulatory scrutiny, meaning your healthcare business needs a proactive defense. Safeguard your practice by establishing a robust compliance program based on federal guidelines. Regular internal audits will also help you catch and correct billing errors early. Every contract must also satisfy strict Stark Law exceptions and Anti-Kickback safe harbors.

What are the common pitfalls in negotiating healthcare contracts?

Healthcare contracts require strict adherence to state and federal laws. First, you must set all lease and compensation rates at fair market value. Paying above-market rates may look like an illegal kickback. Second, never tie provider compensation to patient referral volume. Finally, avoid overly broad noncompete clauses that could restrict your providers if the contract ends.

Put An Experienced Healthcare Transaction Team In Your Corner

A successful transaction needs more than just an agreement on price. It requires a proactive partner who can identify regulatory red flags before they turn into costly liabilities.

At Ottenwess Law, we provide the comprehensive, industry-specific counsel you need to protect your reputation, your assets and your license.

Contact us to protect your interests in a healthcare deal. Call 313-965-2121 or fill out our online form to schedule a free initial meeting with our Michigan healthcare business transactional lawyers.