You are the CEO of Smelter City Medical Center (SCMC).You are in a highly competitive environment, competing with 7 area hospitals.Another hospital in your service area, Swan Lake Healthcare (SLH), approaches you to begin discussions about merging and you begin your due diligence on the transaction.What legal issues should you be considering as part of your analysis and why?

As you complete the due diligence, you learn that the SLH credentials nearly any physician who applies for privileges, regardless of any previous licensure issues the prospective privileged physicians may have.In fact, SLH is in litigation with a former patient who alleges medical malpractice for her hip replacement.Some in the operating room, including the nurses, were employed by the SLH, while others were not.Please discuss both the liability of SLH and the liability of any members of the operating room.Also, what defenses would any of them have?

Would you still proceed with the merger with SLH?