Exit Strategy: Tips On Selling Your Medical Practice

Whether you are seeking employment or planning to retire, here's advice on getting your practice ready for sale.

3 comments on "Exit Strategy: Tips On Selling Your Medical Practice"
Christopher Majdi (7/7/2014 at 3:44 PM)

Cleaning up A/R may provide a temporary bump but it's not going to make much difference in the practice price. Consistent long term financial performance is going to support the practice valuation. All things being equal it's probably a good idea to aggressively collect the A/R, but there are many more systemic changes that need to be made well in advance of the sale in order to maximize the doctor's value for their practice. - Christopher Majdi http://www.linkedin.com/in/christophermajdi
John Sung Kim (9/20/2013 at 2:26 PM)

We see One Medical coming into local markets and crushing valuations. As for AR, an acquirer often assumes that their own collections and accounting (which they assume are far more efficient) will bring the AR % back up to their curve norm. Disclosure: I work for DoctorBase.com - a patient engagement & marketing platform for medical practices. In data spanning 3 years, 11k practices and 5 million patients - we've seen star ratings and sub-specialty demand have the greatest "X factor" swings in valuation, meaning the 5 star practice in social media will command a higher price than a 3 star practice.
Simon Sikorski MD (10/3/2012 at 10:16 AM)

HMCOE works with quite a few medical practice sales/purchases. Most of our clients got acquired by health systems in NJ over the past 2 years. Average practices need to be turned around over a period of 2-3 months to become more profitable by attracting more profitable patients. The practice then puts the data from the increased profits into forecasts to increase the sale price or to enhance interest by buyers. The secret to proper valuation at that point is to sustain the profitability. On the other scope of work, once a practice is acquired a new practice needs to increase its volume of patients. Putting together medical marketing into the practice purchase/sale is a smart way to go


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