Healthcare M&A Regulations

searcher profile

September 25, 2023

by a searcher in Cleveland, OH, USA

Good afternoon. I have more than a passing interest in acquiring healthcare businesses, with a special interest in acquiring sleep clinics, although I’m also considering dental clinics, optometry clinics, and sports therapy clinics.

My main concern is the regulatory environment surrounding ownership of these businesses. I want to know if, as a non-medical professional, it’s even legal to acquire these businesses and employ medical professionals. Does anybody have a good resource to point to? Any advice for navigating this environment?

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Reply by a searcher
from Northwestern University in Denver, CO, USA
It varies by state. The term for this regulatory topic is the "Corporate Practice of Medicine" - you can look up that term and then the name of the state you'd like to operate in to learn more about the requisite approach in that state. Despite the state-to-state variations, there is usually a way around any limitations with the appropriate structure.
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Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
Most, if not all, states, require an applicable professional license in the healthcare industry. MSO as pointed out above is a way around.
My observation: Regulations come when demand for product/service is growing. More regulations make it harder for start-ups and small businesses. And they help larger businesses.
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