Buying or Selling A Medical Practice

The COVID-19 pandemic has had an impact on many people’s lives, not the least of whom are the many brave and selfless frontline providers of healthcare services, including doctors, nurses, home health aides and others in a multitude of healthcare settings. Many healthcare practices have seen a large drop in patient visits and subsequent revenues, which may but doesn’t necessarily have to have a material impact on the valuation of those practices. Good planning and experienced healthcare advisors, such as practice lawyers and accountants can help you navigate the valuation process. And that has a direct impact on the price of a healthcare practice in a sale.

If you are buying or selling a medical practice, what’s included in the price typically includes patient lists, equipment, real property and equipment lease(s), staff, contracts/third party agreements with insurance carriers and (in stock sales) Medicare and Medicaid provider numbers (subject of course to notification and/or submission of applications, updated information, etc.). While less tangible but equally important, the goodwill created by the practice in the community comes with the sale.