Selling my practice - do I have to disclose my payor agreements?

Provided by:  Jennifer Kirschenbaum, Esq.

June 15, 2017

Question: 

Hi Jennifer

I am looking to sell my practice and a prospective purchaser has asked for my payor contracts. The thing is the prospective purchaser is also potentially a competitor and I feel strange releasing. Thoughts?

Thanks, Dr. P

 
Answer:

First, we disclose nothing without a properly drafted non disclosure agreement in place.  If that box has been checked, then, Second, I'm not surprised the prospective purchaser has requested payor contracts - the reimbursement rate may be a driving force of the deal and the purchaser may want to check for assignability; or the purchaser may be looking to steal your rates!  Either way, a good way to stave off sharing and have proprietary data potentially stolen is creating a financial barrier to the disclosure.  Consider requiring a down payment prior to release of the information - and have refundable only under certain circumstances...