Following New York State Governor Kathy Hochul’s proposal in February of this year (see our previous alert), the New York legislature passed and Governor Hochul signed a law on May 3, 2023, which significantly increases the state’s focus and visibility into physician practice management change‑of‑control transactions. New York’s statute reflects a growing trend of states taking note of transactions that previously were not regulated by state administrative agencies. As we await the promulgation of regulations from the New York State Department of Health (“DOH”), we examine here how New York’s law compares to similar laws in other states, and describe precautions that operators in the physician management space — as well as those who do businesses with such operators — should take to safeguard themselves against major disruptions to operations.
Gary Creem is a Corporate partner and member of The Private Credit and Finance Groups.
Gary focuses his practice on complex corporate finance transactions, including leveraged sponsor buyouts, acquisition financings and recapitalization transactions. Gary routinely represents an array of leading institutional investors in direct, club and syndicated financing transactions in the middle market and upper middle market, often involving cross-border components. His clients include leading investment banks, institutional investors, direct lenders, private debt funds and business development companies, and advises these clients on a range of credit products across the capital spectrum, including: senior and senior stretch loans; unitranche facilities (straight and bifurcated); second lien financings; mezzanine debt; subordinated notes; and other innovative financial products.
Gary is recommended by Chambers USA where clients note he is “the go-to guy for those types of transactions [private credit]”, “particularly good at weighing the positives and negatives of any deal to strike a good balance” and “just what we need to get the deal done.” He is often quoted in industry publications, including Private Debt Investor.
A significant part of Gary’s practice is spent counseling institutional investors in complex inter lender arrangements, including agreements among lenders, intercreditor agreements and subordination agreements. Gary frequently advises clients on debt restructurings and out-of-court workouts, including forbearance matters, debt-for-equity exchanges, restructuring support agreements and Article 9 remedies.
Outside of his law career, Gary sits on the board of Families First in Massachusetts.