Affect the timing of the acquisition

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Reference no: EM133539223

Riverside Community Hospital ("RCH"), a not for profit corporation that is tax-exempt and affiliated with the Catholic church, wants to expand its women's services and is considering the acquisition of Women Now, a local OB/GYN physician practice.

Women Now is comprised of 10 physicians, representing approximately 20% of the OB/GYN physicians in the community. RCH already employs 6 OB/GYN physicians. The Women Now physicians perform some reproductive procedures (e.g., tubal ligation, vasectomies) that are not performed within RCH, in light of its religious affiliation.

In some preliminary discussions with RCH, Women Now has disclosed the fact that it has been put on notice of a Medicare audit of certain of its claims, and may have a repayment obligation.

Answer these questions:

1. Describe at least two issues in the proposed arrangement that could affect the timing of the acquisition.

2. How would you address these issues in connection with the negotiation and drafting of a purchase agreement?

Reference no: EM133539223

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