Buying a Medical Practice

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Presentation Description

Purchasing a medical practice and a starting list of acquisition criteria to evaluate the practice.

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Presentation Transcript

Buying a Healthcare Practice : 

Buying a Healthcare Practice www.TransitionConsultants.com 800-416-2055

Acquisition Criteria : 

Acquisition Criteria Many buyers have a general idea of their acquisition criteria but may not have considered how these factors affect one another What are the alternatives?

Profitability of the practice : 

Profitability of the practice Total discretionary net income Ability of practice to support labor value of owner/operator

Profitability of the practice : 

Profitability of the practice Ability of practice to service debt on a practice acquisition loan Ability of buyer to get a loan Credit score, earnings history, and years of licensure

Profitability of the practice : 

Profitability of the practice Ability of practice to provide return on investment Opportunity cost to buyer Obtaining employed position vs. acquiring practice Risk/reward and capitalization of the ROI

Size of the practice : 

Size of the practice Fully mature vs. smaller or start-up alternative Number of providers Time/effort required to manage business aspects

Geographic location of the practice : 

Geographic location of the practice Personal/family preference Local economy Environment for practicing medicine Growth and sustainability of practice

Other qualities of the practice : 

Other qualities of the practice Work/life balance Payor mix Growth opportunity

Parting Words : 

Parting Words By no means a complete list, but begins to touch on a number of factors which are important Each practice opportunity is different and should be evaluated accordingly Don’t rely exclusively on anecdotal information, rules of thumb, colleague recommendations, and other subjective measures

Source : 

Source Transition Consultants 800-416-2055 www.TransitionConsultants.com Practice Sales and Appraisal Medical-Practice-Appraisal.TransitionConsultants.com