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I am considering selling my mental health practice. Do insurance contracts transfer in the sale?

Mental health practice with 5 clinicians, ~250,000.00 annual sales, on most major insurance contracts

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The BAF Group LLC
MD

It depends on the Insurance Contract. You should seek out a Contracts Attorney, to be certain. There may be specific verbiage in the Contract that says whether it can be assigned or not. Sometimes, the Buyer can purchase the Stock, rather than the Assets of the business. That MAY allow the Contracts to convey, if they were written for the Company or Practice, rather that with one specific Therapist. But many Contracts will say that if the primary stockholder(s) change, it can alter the terms or even the validity of the Contract. And buying the Stock of the Corporate umbrella opens the Buyer to a variety of potential liabilities. So again - talk to an Attorney!

Sep 8, 2016

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