Likely Buyers
- Group practice or management companyAdds a location and its patients to an existing network.
- Associate ready to ownAlready knows the patients and wants to take over.
- Hospital systemBuys practices to secure referrals and keep patients in network.
Collections and payer mix
Buyers look at what the practice collects, not what it bills. They also look at the split between insurance, government programs and self pay, since each pays at different rates.
A practice that depends heavily on one insurer carries the same risk as a company with one big customer.
Owner production
If the owner produces most of the revenue, a buyer has to replace that production. Practices with associates or hygienists who bring in steady revenue are worth more, since the income does not stop when the owner leaves.
Expect a transition period where you stay on to introduce patients to the new owner.
Staff, equipment and lease
Long tenured front desk and clinical staff keep a practice running smoothly. Buyers ask who they are and what they are paid.
Imaging machines, chairs and software have value, but old gear is discounted. Review the lease too, and see owning the building if you own the office.
Why timing matters
Patients tend to stay when a trusted associate takes over, and drift away when the change is abrupt. A planned handoff, with the owner introducing the buyer, protects the value that the price rests on.
Patient records
Records are not like other files. Privacy rules apply and licensing boards expect patients to be told who will keep their charts. Read the patient records guide before you sign anything.
First step
A practice sale needs a lawyer who knows healthcare. Start by gathering collections reports, then request a free value check to see a range.