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Crowell & Moring's Tax practice represents health care industry clients with respect to federal and state tax matters in business transactions, controversies, and litigation. Our practice encompasses all U.S. tax aspects of business dealings and all administrative and litigation forums.

We have extensive experience advising charitable and social welfare health care organizations that are recognized as tax-exempt under Code section 501(c)(3), 501(c)(4), and 501(c)(9) (Voluntary Employees’ Beneficiary Associations) on whether proposed activities are consistent with their exempt status, structuring and ongoing administration and compliance issues (including formation, best practices, policies and procedures), unrelated business income issues, and issues arising from participation in partnerships, LLCs, and joint ventures. We also provide counseling on application of Code section 501(m) and a range of issues affecting trade and professional associations exempt under Code section 501(c)(6).

In the transactional area, we counsel health care organizations on the tax aspects of mergers, stock and asset acquisitions, joint ventures, and debt and equity financings. We have drafted numerous executive compensation arrangements, including option and stock plans, for health care clients, and advise on the application of Code sections 162(m)(6), 280G, and 409A. We also work with clients on state tax law matters, including, when applicable, federal preemption of state tax obligations.

We also have extensive experience advising our health care industry clients on all aspects of ERISA and the Affordable Care Act (ACA), including the complex compliance and reporting requirements under Code section 4980H (also known as employer shared responsibility or "pay or play") as well as regulatory and compliance issues concerning HSA’s, HRA’s, FSA’s and other health and welfare benefit plans.

Recent engagements for health care clients include:

  • $440 million stock acquisition of a health management company by a NYSE-listed insurance company. 
  • $165 million merger acquisition of a medical diagnostic company by a NASDAQ corporation.
  • Joint venture establishing a high-volume specialty pharmacy business between two NYSE-listed corporations. 
  • Advised an integrated health care delivery network in consideration of application for tax-exempt status. 
  • Advised on structure, establishment and administration of Voluntary Employees’ Beneficiary Associations under Code Section 501(c)(9).
  • Provided advice regarding application of the Code and ERISA to health insurers and Pharmacy Benefit Managers (PBM’s) with respect to the application of prohibited transaction rules and fiduciary compliance issues regarding health and welfare plans.
  • Provided advice regarding High Deductible Health Plans (HDHPs), HSA’s, FSA’s, HRA’s and related tax issues. 
  • Advised health insurance issuers on application to state governmental entities regarding state law requirements applicable to group Medicare Part D prescription drug plans offered to retirees.
  • Managed care organization in developing tax-qualified travel reimbursement program for employees.
  • Tax-exempt health plan in connection with tax consequences of joint marketing agreement.
  • For-profit health plans and other health care delivery entities in structuring joint ventures with tax-exempt entities.
  • Integrated delivery network in consideration of application for tax-exempt status.
  • Hospice in structuring compensation arrangements to doctors.
  • University health system in creation of new fund entities to invest corporate and pension assets.
  • Private equity sponsor in connection with its acquisition of several dermatology businesses.
  • Health insurance issuer in resolving Code section 4980H compliance issues, including tax reporting and employee classification issues.

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"Payers, Providers, and Patients – Oh My!: Medicare Advantage Supplemental Benefits," Podcast: Payers, Providers, and Patients – Oh My! (October 10, 2019). Contacts: Barbara H. Ryland, Joe Records, Payal Nanavati
Client Alert/Newsletter
Trump Administration’s Executive Order Calls for Innovation in Services, Technology, and Payment Models for Medicare and Medicare Advantage (October 8, 2019). Authors: A. Xavier Baker, Jodi G. Daniel and Grace Fleming.
Publications
"Court of Federal Claims Grants Summary Judgment in Affordable Care Act "Reinsurance" Litigation," Government Contracts Bullet Points (October 8, 2019). Contacts: Stephen J. McBrady, Daniel W. Wolff, Clifton S. Elgarten, Monica DiFonzo Sterling, Charles Baek, A. Xavier Baker, Skye Mathieson
Client Alert/Newsletter
OMB Concludes Review of Proposed Rules for Modernizing Physician Self-Referral and Anti-Kickback Regulations (October 4, 2019). Authors: Troy A. Barsky and Stephanie D. Willis.
Publications
Without Public Policy Changes, The U.S. Risks Losing The Global Race To Innovate In Healthcare (October 4, 2019). Authors: Jodi G. Daniel, and Robert Holleyman.
Publications
"Beat by Beat: Data Governance Innovation for Healthcare Outcomes in the Asia-Pacific," Health Care Alert (September 26, 2019). Contacts: Jodi G. Daniel, Robert Holleyman, Patricia L. Wu, Clark Jennings, Shaina Vinayek
Client Alert/Newsletter
North Carolina Enacts Association Health Plan Law (September 24, 2019). Authors: David McFarlane and Alice Hall-Partyka.
Publications
Tennessee Proposes First of Its Kind Block Grant Program for Medicaid (September 24, 2019). Authors: Barbara H. Ryland, Christopher Flynn and Alice Hall-Partyka.
Publications
Super Lawyers Recognizes 82 Crowell & Moring Lawyers Across United States (Sep.20.2019)
Firm News/Announcement
"11th Circuit Issues Long-Awaited Opinion in AseraCare Affirming that Mere Differences in Reasonable Clinical Judgement Cannot Be False Under the FCA and Remanding for New Trial and Consideration of Full Record," Health Care Alert (September 13, 2019). Contacts: Jacinta Alves, Brian Tully McLaughlin, Nkechi Kanu, Roma Sharma, G. Meredith Parnell
Client Alert/Newsletter

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Crowell & Moring LLP is an international law firm with more than 500 lawyers representing clients in litigation and arbitration, regulatory, and transactional matters. The firm is internationally recognized for its representation of Fortune 500 companies in high-stakes litigation, as well as its ongoing commitment to pro bono service and diversity. The firm has offices in Washington, DC, New York, Los Angeles, San Francisco, Orange County, London, and Brussels.

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