This highly competitive industry competes for the business of a finite number of dentists and oral surgeons. Protecting these relationships is important and often effectuated through confidentiality agreements.
Companies face tax issues as pressure mounts on state governments to raise revenue. With a pathwork of laws, special attention must be made to monitor and comply with these statutes as they are amended.
Compliance with ever evolving federal statutes remains an area of concern, and one that must be monitored going forward.
Given the multitude of companies in the industry, many of which are from abroad, there will be strategic opportunities for savvy companies to forumulate strategic ventures and initiatives.
Like many businesses, these companies constantly face employment issues, vendor concerns, and payment matters. Sales programs, marketing efforts, and promotional strategies all require diligent review for compliance with regulatory and legal requirements.
Start up companies from Europe will benefit by utilizing experienced counsel in the formation of the venture within the United States, and assistance in launching the ventures.
Home Health Care
With governmenally imposed obligations and reimbursement pressure, this industry faces challenges on all fronts. Tight margins, employee turnover and imprecisely defined membership interets seem to plague these companies.
Use of legal counsel to create the company and to carefully set up in articles of organization and by laws is important. Creating formal procedures for employment decisions is helpful in avoiding personnel problems.
Audits conducted by state agency administrators should be anticipated. Preventative internal policies must be issued and understood, with appropriate safeguards that provide a check and balance internally. Many audits result in costly fines and expensive legal defense costs or, worse, the loss of a provider number.
This highly fragmented industry will see consolidation pressures in the years ahead. With that will come opportunity to grow and expand, or to sell and liquidate. Many of these sort of deals benefit both sides, provided the timing is right from both perspectives.