Photo of Eric A. Klein

Eric A. Klein

Partner
Century City
T: 310.228.3728
F: 310.228.3988

Education

  • J.D., Boston University School of Law, 1985
  • A.B., Princeton University, 1981, magna cum laude
  • California, 1986
  • U.S. District Court, Northern District of California
Overview
Honors
Experience
Publications & News
Memberships

Eric Klein is Team Leader of the 120 attorney national healthcare practice, and is a partner in the Century City office, of Sheppard Mullin, a full service AmLaw Global 100 law firm with offices throughout California, New York, Chicago, Washington, D.C., London, Brussels, Beijing, Seoul and Shanghai. With over thirty years of practical legal and business experience, his practice focuses on the healthcare, technology and related industries. Known in the business community for his creative solutions and deal-making ability, Eric uses deep industry knowledge, entrepreneurial solutions, sophisticated negotiation skills and effective legal process to meet the complex business and legal needs of both established and emerging companies.

Eric is one of the most active physician group and hospital M&A lawyers, having advised on more than 60% of all major managed care physician group transactions in the Western U.S. in the past 5 years. Eric represents physician groups, hospitals, health plans, ancillary service providers and private equity and strategic investors. He works with publicly traded and privately held companies across the country and advises both for-profit and non-profit clients on mergers and acquisitions, strategic alliances and joint ventures, operational and contracting matters, strategic planning, HMO licensing and compliance, regulatory matters and information technology transactions.

Eric has been nationally recognized as a leading healthcare lawyer:

  • Chambers USA Guide to Leading Lawyers: Eric Klein “is particularly strong in large transactions" and "has an excellent knowledge base and a huge breadth of experience." Sources say: “In addition to his wonderful grasp of the law, he understands the medical issues and the business aspects - this is a real gift.” He is "a sophisticated transactional lawyer" who is "really knowledgeable and really understands the law because he has done a lot of deals"
  • Legal 500 Guide: He is “a wonderful negotiator, creative, experienced and skillful. Eric is "extremely well versed in healthcare law, and an excellent strategist.” He "has the skills necessary to get the deal done" and is "one of the best M&A lawyers in the industry."
  • Law360: Healthcare Law National MVP
  • Los Angeles Business Journal: Most Influential M&A Advisor
  • The Healthcare team was awarded the Deal of the Year in the healthcare industry by the M&A Atlas Awards in 2013 for the DaVita acquisition of Healthcare Partners.

In the hospital sector, Eric has led 50 hospital purchase/sale and joint venture projects in the last 10 years and has worked on hospital networks, conversion of non-profit hospitals into for-profit hospitals, credit facilities for hospitals, establishment and acquisition of outpatient treatment centers, outsourcing of hospital departments and hospital syndications. He also has assisted with payor contracting and disputes, governmental investigations and licensing, and hospital-physician contracts and joint ventures. He also recently assisted with several revenue cycle management projects.

In addition, he has deep experience in healthcare information systems and technology. Recent projects included multiple large-scale electronic medical records (EMR) systems contracts, including the acquisition of a $12 million ERM system by a hospital, formation of a health information exchange and acquisition and physician roll-out of large-scale medical group EMR systems. Other assignments have included: the development and national roll-out of a personal data assistant (PDA) based information system for hospital-based physicians; the creation of a company that provides real-time PDA-based ICU information; the acquisition and customization of an eligibility and credentialing system; and the implementation of an integrated financial system.

In the area of Knox-Keene HMO regulation, Eric is working on multiple Knox-Keene applications and we represent half of all currently licensed restricted Knox-Keene HMO license holders in California, and obtained a majority of all restricted Knox-Keene health plan licenses granted in California in the past three years.. He obtained a Knox-Keene license for a new vision services plan in nine months, one of the fastest licensure processes in the history of the Department of Managed Health Care. He has assisted Knox-Keene plans with licensure issues, compliance and corrective action plans, restructuring, acquisitions and disposition of plans, holding company structures and credit facilities.

Eric also lectures nationally on negotiation skills and has trained many business leaders, investment bankers, lawyers and entrepreneurs in basic and advanced negotiation techniques. He is a frequent lecturer and has been a featured speaker at the Blue Cross Blue Shield Association National Summit, the California Association of Physician Groups annual meeting, the Hospital Association of Southern California annual meeting, Health Care Executives, HealthLaw 2.0 and other trade associations.

  • Health MVP, Law360, 2013, 2015
  • Most Influential M&A Advisor, Los Angeles Business Journal, 2013
  • Leading Lawyer, Chambers USA, 2012-2016
  • Healthcare, Legal 500, 2011-2016
  • He has received the highest quality rating of "AV" from the Martindale-Hubbell legal directory.
  • Southern California Super Lawyer for Securities and Corporate Finance in Los Angeles Magazine and Southern California Super Lawyers Magazine, 2005, 2006, 2009, 2014, 2015

Selected Mergers and Acquisitions (clients listed first):

  • DaVita Inc. in its $4.4 billion acquisition of HealthCare Partners, a leading national coordinated care provider organization
  • ProHealth Physicians, one of Connecticut’s largest independent primary care physician groups and its integrated management company, in an acquisition by Optum, a leading information and technology-enabled health services business and the coordinated care management subsidiary of UnitedHealth Group
  • Blue Wolf Capital Partners, a New York based private equity fund with over $460 million under management, in its acquisition of National Home Health Care Corp., a leading provider of home care services in the northeastern United States and the financing related to the acquisition
  • Molina Healthcare, Inc. in its acquisition of Providence Human Services, LLC and Providence Community Services, LLC, formerly part of The Providence Service Corporation for $200 million, expanding Molina’s capabilities in behavioral and mental health services
  • Greater Houston Anesthesiology (one of the largest anesthesia groups) in its affiliation with Welsh Carson Anderson & Stowe portfolio company U.S. Anesthesia Partners
  • Memorial HealthCare IPA, a major Orange County independent physician association in its merger with an affiliate of OptumHealth, an affiliate of UnitedHealth Group and represented three major medical groups affiliated with MHIPA in their follow-on sale transactions with OptumHealth
  • Facey Medical Foundation in its long-term affiliation with Providence Health & Services
  • Emergency Physicians Medical Group, one of the largest emergency medical groups in Michigan, in its sale to Envision Healthcare Holdings, Inc., a publicly traded company and a leading provider of physician‑led, medical services in the United States
  • Scottsdale Emergency Associates, Ltd., a 40 physician Arizona emergency physician practice, in its acquisition by affiliates of Envision Healthcare and EmCare
  • Greater Newport Physicians and Nautilus Healthcare Management Group in their affiliation with MemorialCare Medical Foundation
  • Affinity Medical Group in its affiliation with Stanford’s University HealthCare Alliance
  • Talbert Medical Group in its merger with HealthCare Partners
  • Bristol Park Medical Group in its affiliation with MemorialCare Medical Foundation
  • Providence Medical Institute in its affiliation with Axminster Medical Group
  • Lakeside Systems, Inc. in its acquisition by an affiliate of Regal Medical Group
  • More than twenty hospital acquisition and sale projects, including the purchase of Alvarado Hospital in San Diego from Tenet Healthcare by Plymouth Health, LLC, and its subsequent sale, and the purchase of Memorial Hospital of Gardena and East Los Angeles Doctors Hospital by Avanti Hospitals LLC
  • The purchase and sale of Medicare, Medicaid, dental and vision health plans
  • Since 2012, represented eight anesthesia practice groups located primarily in Texas and Colorado in their acquisition by U.S. Anesthesia Partners, the nation’s largest anesthesia-focused, single-specialty physician services organization

Hospital/Physician Affiliation Transactions:

  • Heritage Development Organization, an affiliate of Heritage Provider Network and a national leader in coordinated care and integrated delivery network development, in forming a multi-billion dollar joint venture with Trinity Health, the nation's second-largest nonprofit hospital system to better coordinate patient care across much of the country.
  • PriMed Physicians, one of the largest multi-speciality physician groups in Connecticut, in its affiliation and alignment with Yale New Haven Health System, a major integrated delivery system in Connecticut.
  • Heritage Development Organization in an agreement with Fresenius Medical Care, a diversified health care company and North America’s largest provider of kidney care and hospitalist services, to develop or acquire physician networks and groups and to provide care coordination and population health management services in select markets throughout the country.
  • Paladin Healthcare Management, a healthcare management and private equity firm with a focus on reengineering operations at urban hospitals to produce value added outcomes, in a collaboration with Howard University where Paladin, through a management services agreement, will create up to 30 new community primary care centers around Howard University and provide management services to Howard University Hospital.

Selected Operational and Contracting Projects:

  • Advised on innovative long-term $60 million HCC-RAF agreement between health plan and integrated medical group
  • Establishment of public/private partnership for county-wide care network that integrates for-profit IPA networks with county owned hospitals and physician clinics
  • Successful application for Medicare Shared Savings Accountable Care Organization
  • Preparation of national IPA provider contract template for leading national Medicare Advantage payor
  • Structuring of strategic alliance between payor and integrated medical group to transition market from fee-for-service model to coordinated care model
  • Structuring of large scale contractual joint venture for staff model medical group to manage MLR in multiple hospital system and utilize quality-based shared savings structure
  • Negotiation of a $1 billion pharmacy benefit management agreement
  • Structuring of "state of the art" management services agreements and physician compensation arrangements

Articles

Healthcare Law Blog Posts

Media Mentions

Speaking Engagements

  • Speaker at the California Association of Physician Groups Annual healthcare Conference," June 16-19, 2016
  • "ACG Healthcare Panel," Moderator for Association for Corporate Growth Los Angeles, June 8, 2016
  • “Market Dynamics and New Transactions," Speaker at the 10th Annual MDS Healthcare Leadership and Executive Conference, October 5, 2015
  • "Transactions and Market Change," Speaker at the 9th Annual MDS Healthcare Leadership and Executive Conference, September 15, 2014
  • “Physician/Hospital Integration: What’s Happening? What’s Working? Will It Last?” Panel speaker at the ABA Healthcare Section - Washington Health Law Summit – December 9, 2013
  • “Who's Next? -- Analyzing Strategic Transactions and Opportunities in Today's Market,” National Accountable Care Organization Congress, November 5, 2013
  • “Recent Trends in Physician Alignment Transactions,” Idaho Hospital Association Annual Meeting, October 6, 2013
  • “Changing Healthcare Landscape - A conversation on the changing forces in healthcare, their impact on providers, and strategic solution,” Panel speaker at the Marsh Healthcare Summit - September 24, 2013
  • “Where Healthcare Reform is Really Going: Thoughts on Strategy, M&A and Survival,” MDS Healthcare Leadership and Executive Conference, September 23, 2013
  • “Investment Opportunities in the Healthcare Reform Environment: A Case Study on Population Health Management, the Expanding Medicaid Market and Serving the Latino Healthcare Market,” Panel speaker at the ACG-LA Business Conference Healthcare Panel, September 18, 2013
  • “Patients, Payors & Piggy Banks: Healthcare M&A in a Post-Obama Carmageddon World,” ACG LA Healthcare M&A Panel, February 20, 2013
  • “Post-Election Healthcare Reform,” Cushman Wakefield’s CFO Roundtable, December 5, 2012
  • “Into Which Healthcare Segment is Investment Capital Going to Flow,” HCE Annual Meeting, December 4, 2012
  • “Inside the Deals: Recent Mergers & Acquisitions in the Healthcare Industry,” National Accountable Care Organization Congress, October 30, 2012
  • “Lions & Tigers & Bears: Next Steps in the Consolidation of the California Market,” CAPG Annual Conference, May 2012

Events

  • Director, Association for Corporate Growth Los Angeles
  • Member, American Health Lawyers Association
  • Member, California Society for Healthcare Attorneys