Legal Question in Business Law in Florida

Buyer wants to purchase a business that is a Medicare provider. Medicare can go back 7 years and recoup payments if an audit warrants the recoupment. Buyer needs to be protected from recoupments generated because of the current owner's poor billing practices. Can the buyer request the current owners purchase a bond that could be used to offset any recoupments of payments that were the result of the current owner's actions?


Asked on 8/30/11, 1:44 pm

1 Answer from Attorneys
Stephen Orchard Law Offices of Stephen Orchard

Two more likely approaches are to (1) factor the potential liability into the purchase price and/or (2) receiving indemnification from the seller for such matters. I'm not certain that what you describe can be bonded or insured.

Read more
Answered on 8/30/11, 1:49 pm


Related Questions & Answers

More Business Law questions and answers in Florida