DOJ Guidance Identifies Suggestions for Due Diligence Processes in Health Care Mergers and Acquisitions

Posted on Monday, March 6, 2017 3:09 AM

The Criminal Fraud Section of the U.S. Department of Justice (DOJ) released guidance entitled “Evaluation of Corporate Compliance Programs.” The DOJ Guidance addresses multiple areas that need to be addressed before the Fraud Section evaluates an entity’s compliance program.

According to Ari J. Markenson, J.D., M.P.H., Partner at Winston & Strawn LLP, the DOJ guidance focused on the diligence process in the M&A context with the following specific areas of inquiry:
• Due Diligence Process
• Integration in the M&A Process
• Process Connecting Due Diligence to Implementation

The DOJ Guidance indicates that DOJ attorneys will assess the following:
• If the misconduct or the risk of misconduct was determined during M&A due diligence
• The risk review process for the acquired/merged entities
• The typical process that has been in place for the M&A due diligence
• The compliance function and how it was incorporated into the merger, acquisition, and integration process.
• Follow-up is the main concern

The DOJ Guidance explains that health care M&A buyers need to confirm that the implementation of the due diligence process used to review compliance-related matters is seamless. If compliance related issues are found, buyers need to pay attention to the mitigation efforts regarding the 60-day repayment rule.

The DOJ will also evaluate several components in determining whether or not it will pursue charges or how it might negotiate resolutions concerning criminal matters.

The CorridorComply web-based tool identifies your program from basic to advance in each of the OIG’s 7 Elements of an Effective Compliance Program. Contact a Corridor representative today to learn more about how CorridorComply can help ensure that your organization is on a strong path toward compliance excellence!

For the full article, click here (must have a LinkedIn account to access).


About Corridor

Corridor is the nation’s preferred partner and trusted business advisor to home health and hospice providers, providing quality services and impactful results for 30 years. Focusing on key operational, regulatory and financial challenges, Corridor delivering industry-unique solutions and deep expertise in coding, clinical documentation review, compliance, billing and collections , consulting and provider staff education . At Corridor, we make the business of caring for people Better! For the most important industry updates and news that impacts home health and hospice, please make sure to sign up for our weekly newsletter to receive the latest up-to-date industry information direct to your inbox!

For additional information, please contact Corridor at 1-866-263-3795.

Go Back

Explore Corridor’s Solutions

Share This Story, Choose Your Platform!