Healthcare Shareholder John R. Washlick Heavily Quoted in BNA’s Health Law Reporter on Nonprofit Healthcare Transactions

BNA Health Law Reporter reported on a recent nonprofit hospital system acquisition deal that was denied due to alleged political maneuvering in California. Buchanan Healthcare attorney John R. Washlick told that publication that healthcare transactions that involve a fundamental change in ownership of nonprofit healthcare corporations are typically subject to review and approval by state Attorney Generals (AG).

"Most states provide statutory review and approval," Washlick said. "It is also not uncommon for AGs to impose conditions on the buyer to assure that certain charity care, clinical services and social programs are continued after the transaction in order to assure that the transaction does not adversely affect the availability or accessibility of healthcare in the affected service community."

"In order for the AG to fulfill its obligation," Washlick said. "It must review relevant financial, corporate, and transactional information in order to reach a decision to approve or object." 

Read the full article – "Prime Healthcare Says Political Maneuvering Scuttled $800M Hospital System Transactions” (BNA Health Law Reporter, Vol. 24, No. 38, ISSN 1064-2137). Begins on page 1273. Subscription required.