Based on my experience, the following is the typical process on how a hospital goes about acquiring a physician practice these days; is there anything you would add or revise?
- Sign Confidentiality Agreement
- Valuation of the Practice
- Due Diligence by all Parties
- Sign Letter of Intent (Non-Binding)
- Draft Documents and Negotiation
- Asset Purchase Agreement, Stock Purchase Agreement, or Merger Agreement
- Physician Employment Agreements
- Leases (with acquired group or third party parties)
- Obtain Hospital Board Approval (if necessary) and Physician Shareholder
- Approval
- Sign Transaction Documents
- Obtain third party assignments and consents
- Physician medical staff and payor credentialing
- Implementation
