Continuing a trend of states attempting to exert additional oversight on transactions in the healthcare space, the Maine legislature introduced a bill that would increase state oversight of proposed transactions involving health care entities licensed in Maine.
Importantly, the proposed legislation would cover transactions involving Maine “health care entities” (defined to include healthcare providers, facilities, and provider organizations licensed in Maine), as well as private equity groups and hedge funds (which are not further defined) acquiring such Maine health care entities, Sidley reports.
The bill defines “material change transaction” to include
- corporate mergers including one or more health care entities
- acquisitions of one or more health care entities
- any arrangement or contract that results in a change of control
- the formation of a parentship, joint venture, accountable care organization, parent organization, or management services organization for the purpose of administering contracts with third parties
- a sale, purchase, lease, or affiliation that results in a transfer of control over a board of directors for a hospital. Read more.
