Jaya White, Randy Fearnow Author Bloomberg Law Article About New Indiana Law on Health Care Merger Notification
Randy Fearnow and Jaya White, Chicago-based partners in the Quarles & Brady Health & Life Sciences Practice Group, wrote an article for Bloomberg Law about the implications of a new Indiana law related to health care mergers and acquisitions. The law, which goes into effect July 1, requires health care entities planning M&A activity to notify the state attorney general 90 days in advance.
Fearnow and White explained that the new law will require those contemplating a transaction to think carefully about how the law might affect their plans. An excerpt:
Without further regulation or agency guidance, this Indiana law will have far-reaching impacts on almost all of the state’s health-care entities in the state. To determine the law’s applicability, Indiana health-care entities—including long-term care providers—should consider several factors:
- Does an Indiana health-care entity require a physical presence within the state or a license by the Indiana Department of Health or another state agency?
- How is the $10 million asset threshold calculated and applied?
- What happens if the attorney general doesn’t send written notice of antitrust concerns?
- Is providing notice 90 days prior enough to satisfy the law?
- How does this new requirement impact transactions closing in 2024, and will there be a transitional period after July 1?
Any Indiana health-care entity considering an ownership-related transaction needs to understand how the answers to these questions may affect them. These entities should also start thinking about what information they will need to disclose and how the law could impact the timing of a transaction.