The LA Times reported on March 18, 2015, that one of California’s biggest health insurers, Blue Shield of California, had lost its tax-exempt status. The report came after California’s Franchise Tax Board quietly revoked Blue Shield’s state tax-exempt status back in August 2014. One of the biggest reasons for doing so was because of Blue Shield’s huge financial reserves.

Husch Blackwell welcomes two attorneys to its Denver office: Senior Counsel Julie A. Sullivan and Associate Lawson S. Parker II. Sullivan and Parker both join the firm’s Healthcare, Life Sciences & Education industry team.

Sullivan has served as both in-house and external counsel to members of the healthcare industry. She counsels clients on a variety of regulatory and compliance issues, and transactional matters, and has also assisted clients with mergers and acquisitions. Parker assists hospitals, physicians, single and multi-specialty group practices, dentists and other healthcare professionals with respect to their operational, transactional and regulatory compliance matters. He also advises on mergers and acquisitions, joint ventures, the sale of healthcare-related entities and employment matters.

Because the healthcare industry is heavily regulated and complex, most healthcare deals involve a sign-then-close structure; that is, they have a period of time between signing the agreement and the closing date. This built-in period after signing the purchase agreement gives the parties time to obtain necessary approvals or perform necessary pre-closing covenants.

It’s a dangerous world for protected information, with major breaches in the news and a challenging cyber-threat environment behind the scenes. The healthcare industry is a prime target, especially given the premium value of health information on the black market. And healthcare entities face not only PHI breach exposures, but also security risks for other forms of protected information, such as PII and, for many, cardholder data.

Healthcare organizations must be prepared to respond to data breaches, but effective response is no small matter. There are 10 different channels of response activity for an organization that has suffered a security breach: Security, Legal, Forensic, Law Enforcement, Regulators, Insurance Coverage, Public Relations, Stakeholders, Notification, and Personnel Management. Most of these activities are involved in every breach, and all must be dealt with in significant breaches. These activities are not sequential. They play out in parallel, with interrelated effects… and with the response clock ticking.

The DOL’s self-imposed February deadline for announcing new FLSA regulations redefining “white collar” exemptions has come and gone with without any action from the DOL. No new deadline has been announced; however, the DOL’s website suggests that it still hopes to release the new regulations soon. Stayed tuned, and we will report back when the…

Changes to Texas Medical Board regulations regarding the supervision of physician assistants went into effect March 12, 2015, and will reduce both: (i) physician oversight obligations; and (ii) conflict with prescriptive delegation regulations. Specifically, requirements of Tex. Admin. Code tit. 22 §185.16 were reduced to only prohibiting a physician assistant from independently billing patients “except where provided by law.”

Over the last few decades, the healthcare industry has come to recognize that research on children is necessary to determine the safest and most effective treatments for pediatric patients. Whether your institution is part of a nationally renowned research program or participates in a few pharmaceutical research studies a year, the following two issues are critical when structuring research studies that involve pediatric patients.

Husch Blackwell attorneys are presenting at the Colorado Health Care Association and Center for Assisted Living Legal Symposium on elder abuse and financial exploitation on March 12 in Denver.

Healthcare providers are responsible for detecting, preventing and reporting elderly abuse, including financial exploitation. With the enactment of the Affordable Care Act, the reporting requirements of the Elder Justice Act are now in effect.

As with any transaction, a healthcare deal typically starts with a Letter of Intent (“LOI”) or Term Sheet to outline the base agreements on the business deal. The LOI or Term Sheet should include not only the purchase price (or range), purchase price adjustments, payment terms, closing conditions, confidentiality, exclusivity, and other common items, but also the transaction structure – for example, asset sale, stock/membership interest sale, merger, joint venture, affiliation, etc.

The U.S. Court of Appeals for the 9th Circuit affirmed a lower court’s findings Feb. 10, 2015, that the acquisition by St. Luke’s Health System (“St. Luke’s”) of Saltzer Medical Group (“Saltzer”), a physician group consisting mostly of primary care physicians, violated Section 7 of the Clayton Act. This is the first case in which the Federal Trade Commission (“FTC”) litigated through trial a challenge to a physician acquisition.