Following the launch of several platforms in recent years, it seems that private equity’s interest in the fertility space is trending up again. Investment in this sector brings some unique issues that potential investors should consider. In addition to the issues to consider in any physician practice transaction, below we discuss 10 diligence issues unique to investments in the fertility sector.

1. Don’t assume that government pay is off the table or that anti-kickback laws do not apply.

For purposes of the federal Anti-Kickback Statute (AKS), TRICARE, which covers military personnel, counts as a federal healthcare program. TRICARE covers some services that could lead to conception. If government programs are involved, the federal AKS applies and will subject the transaction to AKS analysis. In addition, some states have all payor anti-kickback statutes that subject a transaction to the same requirements as the AKS but for all payors, including self-pay patients.