Hospital acquisition of a physician practice – the process

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?

  1. Sign Confidentiality Agreement
  2. Valuation of the Practice
  3. Due Diligence by all Parties
  4. Sign Letter of Intent (Non-Binding)
  5. Draft Documents and Negotiation
  6. Asset Purchase Agreement, Stock Purchase Agreement, or Merger Agreement
  7. Physician Employment Agreements
  8. Leases (with acquired group or third party parties)
  9. Obtain Hospital Board Approval (if necessary) and Physician Shareholder
  10. Approval
  11. Sign Transaction Documents
  12. Obtain third party assignments and consents
  13. Physician medical staff and payor credentialing
  14. Implementation

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