Buying or selling a medical practice is a complex transaction requiring careful planning, proper valuation, and attention to healthcare-specific regulatory requirements.
Practice Valuation
Key factors in valuing a medical practice:
- Revenue and profitability trends
- Payer mix and reimbursement rates
- Patient demographics and retention
- Tangible assets (equipment, supplies)
- Intangible assets (goodwill, patient records)
- Real estate (owned vs. leased)
- Staff and employment arrangements
Due Diligence Checklist
- Financial statements (3-5 years)
- Tax returns
- Payer contracts and fee schedules
- Employee agreements
- Equipment leases and conditions
- Real estate lease terms
- Malpractice history and insurance
- Compliance history
- Patient volume and demographics
- Referral relationships
Regulatory Considerations
Healthcare transactions must comply with:
- Stark Law and Anti-Kickback Statute
- State corporate practice of medicine laws
- HIPAA (patient records transfer)
- Licensing and credentialing requirements
- Medicare/Medicaid enrollment changes
Transition Planning
A successful transition includes patient notification, staff retention strategies, referral source communication, and gradual handoff of patient relationships.