In Hawaii, the purchase and sale of medical or dental practice is never “cookie-cutter” because in each transaction there is something unique. For example, in each transaction either the buyer is:
- Purchasing the office (so standard due diligence is required such as inspections and review of Declarations),
- Taking over the existing lease (so lease review and lessor’s consent are required as well as estoppel from the lessor), or
- Entering into a new lease as a condition of the sale (so lease negotiation is required).
Thus, a significant component of the transaction is the conveyance of Hawaii real estate.
Other Issues After the Purchase
Then are issues such as:
- What happens to the existing employees (involves employment concerns),
- What happens to the retiring physician or dentist (involves independent contractor concerns),
- What happens to the medical records (involves health care concerns), and
- How the younger physician/dentist will pay for this (involves finance concerns) all complicate matters even more.
Add into that mix that although the Hawaii retiring physician/dentist may feel his or her practice has a certain value, federal health care law prohibits what factors can be considered in that valuation.
In summary, although not “cookie-cutter”, because of my broad background, there are a lot of similarities that allow me to efficiently document the deal to the satisfaction of my clients.
Contact me if you’re a potential seller or buyer of a Hawaii medical or dental practice and need legal help in documenting your handshake deal.
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