BLOG: Investing in or Acquiring a Medical Provider? Costs of Improperly Reporting Medicare Changes in Ownership (CHOW)

When an investor desires to invest in or acquire a medical provider, the investor must understand how the transaction may affect the provider’s Medicare enrollment. Depending on the structure of the transaction, the provider must report certain changes in the provider’s ownership to the Centers for Medicare & Medicaid Services (“CMS”). Compliance with CMS’s notification requirements permits the provider to continue participating in the Medicare program under its provider agreement with minimal, if any, delays or issues. However, if the . . . Read More

BLOG: New Judicial Order Offers Clarity on Maryland Statutes of Limitations Impacted by COVID-19

Early during the COVID-19 pandemic, a number of state-level court systems, including Maryland’s courts, declared judicial emergencies and issued orders automatically tolling, or postponing, the expiration of statutes of limitations [1] for claims filed within those states. These orders offered plaintiffs a reprieve from the strict filing deadlines. Now, as Maryland begins the process of reopening its court systems to the public, the state’s highest court has issued an order offering clarity as to the new filing deadlines for the expiration of . . . Read More

BLOG: HHS Provides Guidance on the CARES Act’s Provider Relief Fund

Under the CARES Act, Congress set aside $100 billion for the Public Health and Social Services Emergency Fund (the Provider Relief Fund) to reimburse healthcare providers for healthcare-related expenses or lost revenues attributable to the Coronavirus (COVID-19); the Paycheck Protection Program and Health Care Enhancement Act, which President Trump signed into law, will provide an additional $75 billion to the Provider Relief Fund. Eligible healthcare providers that provide diagnoses, testing, or care for individuals with possible or actual cases of . . . Read More

BLOG: Delaware Allows Public Companies to Hold Remote Shareholder Meetings

On April 6, 2020, Governor John Carney of the State of Delaware issued the Tenth Modification of the Declaration of a State of Emergency for the State of Delaware Due to a Public Health Threat (the “Declaration”). The initial declaration was issued on March 12, 2020. Among other matters relevant as a result of the COVID-19 pandemic, the Declaration touches on a change in shareholder meetings related to publicly traded companies organized in the State of Delaware. In line with the social distancing principles adopted by all businesses, the Declaration allows the board of directors of companies that issued notices for . . . Read More

BLOG: COVID-19 and Material Adverse Effect Provisions in Acquisition Agreements

The coronavirus (COVID-19) continues to create extensive uncertainty for individuals and businesses. For parties actively pursuing an M&A transaction, COVID-19 presents the buyer and seller with additional risks both pre- and post-closing, including impacting the valuation of the target company, increasing exposure to liabilities relating to performance and payment obligations, expanding risk of claims from employees and other personnel, among other extraordinary risks that may result in delay or, in the worst cases, termination of the transaction. Traditionally, acquisition agreements include . . . Read More

BLOG: Purchase Agreement Components, Part 1: Options for Forms of Purchase Price Consideration in Acquisition Agreements

Whenever parties enter into negotiations to buy and sell a target company, one of the first points of discussion is the purchase price. In particular, the purchase price discussion often reflects the amount of cash that will be paid by the buyer to the seller at closing, and, in fact, nearly all acquisitions involve cash as all or part of the purchase price consideration. However, a cash payment at closing is not the only type of consideration that is common . . . Read More

BLOG: COVID-19 and Its Effects on Credit Facilities

With the spread of COVID-19, businesses all over the world have seen their operations affected and their cash flow and production decreased, putting them at risk for potential default on their credit obligations. The prediction is that the global economy will enter into a recession, which will continue to affect the financial situation of millions of businesses. All businesses should consider the available options to remedy any borrowing deficits in light of specific circumstances. When providing financing for business enterprises . . . Read More

BLOG: Important Considerations When Structuring M&A Transactions for Government Contractors: Pre-Transaction Part 1 of a 3-Part Series

M&A transactions involving government contractors carry several regulatory and industry-specific considerations that can materially impact all aspects of the deal—from high-level structuring considerations to risk allocation for compliance issues to additional administrative checklist items. If neglected or overlooked, they can result in major headaches. This three-part series outlines certain key issues to consider before, during, and after transactions involving government contractors. Pre-Transaction: Novation The Anti-Assignment Act (41 U.S.C. § 6305) generally prohibits companies from selling government contracts. However, the Federal . . . Read More

BLOG: New York v. Delaware Part 2: Which State is Best for Governing Law?

In Part 2 of this blog series (visit this link for Part 1), we dive into which state—New York or Delaware—is best for businesses to consider as governing law for their contracts. Both Delaware and New York have a reputation for being the governing law or jurisdiction of choice in commercial agreements and corporate transactions. A company’s decision will greatly impact which rules and laws govern agreements when legal issues arise. Where Should I Go for Governing Law? Both Delaware and New . . . Read More

BLOG: New York v. Delaware Part 1: Which State Is Best to Incorporate My Business?

Business owners often have two questions when launching their business and growing it through commercial relationships and/or corporate transactions. These questions are “where should I incorporate?”, and once the business is incorporated and operating, “what should the applicable law be of our agreements?” Two states come to mind when dealing with these questions. Both Delaware and New York have developed a reputation for purposes of incorporating businesses and being the governing law/jurisdiction of choice in commercial agreements and corporate transactions. . . . Read More