The Rhode Island Attorney General has adopted a final rule requiring certain healthcare entities to notify the office of material transactions at least 60 days before they take effect, beginning Jan. 28, law firm Adler, Pollack and Sheehan wrote in JDSupra Jan. 9.
The policy applies to “material changes” involving medical-practice groups and is intended to increase regulatory oversight of healthcare consolidation. Covered transactions include mergers, acquisitions, employment arrangements and partnerships that result in groups of eight or more physicians, physician assistants or nurse practitioners. Transactions involving hospitals, health systems or entities affiliated with them, including management services organizations and medical foundations, are also covered.
Deals involving a “significant equity investor” are also subject to the rule. This includes private equity firms and any entity holding more than 10% ownership in a practice group or MSO.
Parties must submit a written notice to the Attorney General’s office at least 60 days before the effective date using a compliance form. Noncompliance may result in penalties of up to $100,000 and the Attorney General may seek injunctive relief to pause a deal until the 60-day compliance period is met. The rule permits confidential handling of submitted information, except when required for law enforcement or the public interest.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.