Throughout the country, the focus on unclaimed property by states and third-party auditors continues to intensify. States increasingly are viewing unclaimed property as a major source of revenue – a way to fill budget gaps without raising taxes. The result is an uptick in unclaimed property audit activity within the healthcare industry.
Many healthcare organizations and their leadership now are spending more time, energy, and resources maintaining compliance with unclaimed property regulations. Several complexities within the industry today, however, make staying on top of unclaimed property particularly challenging.
One complexity in healthcare is the near-historic levels of merger and acquisition (M&A) activity in the industry.1 Unclaimed property likely is being discussed more frequently during the due diligence process of M&A transactions, as both stock and asset deals affect an organization’s exposure.