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NY Health System Sells Lab Assets to Life Sciences Company

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Industry: Health Care

Key Facts

  • Seller is one of the largest academic health systems in the country, located primarily in New York
  • Attorneys from 6 practices worked on the transaction
  • Comprehensive representation included negotiating and drafting transaction documents, due diligence, preparing disclosures, and advising on federal and state regulatory matters
  • Transaction value exceeded $200 million

The Situation

A leading, international life sciences company with 50,000 employees, which serves clients in 60 countries and one of the largest health systems in New York City, purchased certain assets of the health system related to its clinical outreach laboratory business (the “Outreach Assets”).

The Approach

Mintz represented the health system and its constituent hospitals in connection with the sale of the Outreach Assets. We handled all aspects of the transaction, including structuring, drafting, and negotiating the transaction documents, managing the performance of seller’s diligence, preparing disclosures, advising on federal and state regulatory notices and approvals — and advising on related health law and compliance, trademark licensing, corporate, real estate, employment, labor and benefits, and antitrust matters and submissions.

The Outcome

As a result of this transaction, seven patient service centers originally operated by the health system have been added to the life sciences company’s existing network of 120 patient service centers in the metropolitan New York City area.  In addition, the life sciences company is now able to provide comprehensive outreach laboratory services to physicians and patients who previously used the health system’s outreach laboratory services, should the physicians and patients so choose.  Lastly, the transaction will allow the health system to focus more on its core lines of business, including in-hospital patient and outpatient care. 

Supporting Professionals

Health Law Member Brian Platton led a team that included attorneys from that practice as well as the Corporate & Securities, Real Estate, Employment, Labor and Benefits, Antitrust, and Private Client practices.