Maine Gov. Janet Mills signed legislation April 13 that increases state oversight of certain healthcare transactions, according to an April 28 article from law firm Foley & Lardner that was published by JD Supra.
Six notes:
1. HP 1480/LD 2201 gives the Maine Department of Health and Human Services the authority to approve certain healthcare transactions involving private equity companies and hedge funds, as well as certain MSOs that are connected to private equity or hedge fund ownership.
2. The law was enacted in response to recommendations made in December by the Maine Commission to Evaluate Regulatory Review and Oversight of Health Care Transactions.
3. Beginning Jan. 1, certain healthcare entities are required to notify the HHS Department at least 180 days before completing a proposed transaction. This requirement only applies to “material change transactions,” or the acquisition of a majority interest or operational control of a healthcare entity by private equity companies, hedge funds or MSOs.
4. The new law does not apply to MSOs that do not involve private equity or hedge funds, according to the report.
5. The HHS Department and the Office of Affordable HealthCare will notify healthcare entities within 60 days whether the transaction is approved, subject to conditions or a comprehensive review, or rejected.
6. A comprehensive review will be required for all transactions that will result in a transfer of assets over $100 million, as well as if the transaction will lessen competition or impact the cost, quality of, or access to healthcare services in any region within the state.
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