Patricia Hofstra on Alternatives to Acquisition in Healthcare

Patricia Hofstra, attorney, Duane Morris, discusses options independent oncology groups have other than being acquired by larger healthcare or cancer centers, if the situation arises.

If an independent healthcare group is approached by a larger entity for acquisition, Hofstra says there are alternatives to take, cautioning that the acquisition does not benefit all parties involved. If groups do choose the acquisition agreement, Hofstra says they should create exit strategies.

If a hospital acquires an independent practice, Hofstra says the healthcare system will often pay for the practice and its costs. However, the healthcare system may decide to terminate employment of original practitioners, since they would have full ownership.

Since this fallout may not be beneficial, Hofstra suggests independent practices and larger entities look to alternative solutions, such as co-management agreements and service-line management agreements.