Brad Smith
Managing Director/PartnerVertessFor over 20 years, I have held a number of significant executive positions in healthcare companies, including Lone Star Scooters, which I founded to offer medical equipment and franchise opportunities across the country; Lone Star Bio Medical, a diversified DME, pharmacy, health IT and home healthcare company; and BMS Consulting, where I provided strategic analysis and M&A intermediary services to executives in the healthcare industry. In addition, I am a regular columnist for HomeCare Magazine and HME News, where I focus on healthcare marketplace trends and innovative business strategies for the principals of healthcare companies.
At VERTESS, I am a Managing Director and Partner with considerable expertise in private equity recapitalizations, DME/HME, home healthcare, hospice, medical devices, health IT/digital health, lab services and related healthcare verticals in the U.S. and internationally.
LEG02: M&A Considerations in Avoiding Government Enforcement Action
When engaging in mergers and acquisitions (M&A) in the healthcare sector, careful attention to regulatory compliance is essential to avoid enforce…When engaging in mergers and acquisitions (M&A) in the healthcare sector, careful attention to regulatory compliance is essential to avoid enforcement actions. Key considerations include thorough due diligence to uncover potential violations of h…When engaging in mergers and acquisitions (M&A) in the healthcare sector, careful attention to regulatory compliance is essential to avoid enforcement actions. Key considerations include thorough due diligence to uncover potential violations of healthcare laws such as the Anti-Kickback Statute, Stark Law, and HIPAA. Parties must evaluate the target’s billing practices, licensure status, and any history of audits or investigations. Ensuring co…When engaging in mergers and acquisitions (M&A) in the healthcare sector, careful attention to regulatory compliance is essential to avoid enforcement actions. Key considerations include thorough due diligence to uncover potential violations of healthcare laws such as the Anti-Kickback Statute, Stark Law, and HIPAA. Parties must evaluate the target’s billing practices, licensure status, and any history of audits or investigations. Ensuring compliance with federal and state fraud and abuse laws is critical, as even inadvertent violations can lead to significant penalties, transaction delays, and materially impact valuation. Awareness of emerging state disclosure requirements for private equity investments is becoming increasingly important. Structuring deals to address identified risks—such as through indemnifications or compliance plans—is also recommended. Post-closing integration should include alignment of compliance programs and staff training. Involving legal and compliance professionals early helps mitigate risk and supports a smoother transition. Ultimately, proactive regulatory planning throughout the M&A process protects both the acquiring and acquired entities from potential enforcement exposure and ensures long-term operational success.Show MoreClick the title to see all detailsShow More
