IsfLorIdanext ? InCreasesInm & anotICerequIrements
Health Care law Section Chairs : Elizabeth “ Beth ” Scarola – EpsteinBecker & Green , P . C . & JenniferTouse – BayCareHealthSystem , Inc .
Investorsandsellersshould workwiththeirattorneysto carefullymonitorthechanging landscapearoundreporting .
In late 2019 , House Bill 7111 was introduced in the Florida House of Representatives , which would have required parties to provide notice to the Florida Attorney General of certain health care transactions , such as mergers and acquisitions . Although this bill was ultimately withdrawn from consideration , the trend over recent years of health care transaction oversight that has been observed in other states may signal that similar legislation may be reintroduced in Florida .
An increasing number of states are requiring advance notice of health care transactions . This year , California , 2 Illinois , 3 and Minnesota 4 became the latest
states to implement health care transaction reporting requirements , joining New York , 5 Connecticut , 6 Massachusetts , 7 Nevada , 8 Oregon , 9 Rhode Island , 10 and Washington 11 as states that already required notice of certain health care transactions . This recent increase in reporting requirements reflects a growing concern among regulators that healthcare mergers and acquisitions , especially private equity-backed acquisitions , may require additional oversight or approval . States are implementing these reporting requirements with a variety of goals , such as enforcing anti-competitive laws and ensuring transactions do not have a material impact on the cost and quality of health care services provided in the state .
While many of these requirements are new or even still evolving , it is important for any purchaser or seller to take these requirements into account and to consult with counsel to ensure additional states , including Florida , have not introduced reporting requirements and to strategically plan how to mitigate the impact of an applicable reporting requirement . These reporting requirements require the disclosure of sensitive information to state agencies , increased transaction costs , and can result in significant
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