Lessons from the hospital merger wars.
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The formation and operation of integrated healthcare delivery systems raise significant legal issues. Some of these issues, such as antitrust, tax-exempt status, and fraud and abuse, have been discussed extensively. However, other legal issues, such as those involving management of business risk, use of systemwide information management, and securing of tax-exempt financing, have not received much attention.
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Independent practice associations (IPAs) and similar organizations are forming more rapidly as the healthcare industry evolves. The formation of IPAs, however, raises a number of legal issues that must be addressed and resolved, issues related to licensure and choice of entity, antitrust, self-referral, insurance regulations, and liability.
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