As health care consolidation increases, physicians consider selling their medical practice. As health care consolidation increases, physicians consider selling their medical practice. Small, independent medical practices must constantly assess their standing and finances and determine if it’s time to sell. If you are thinking about selling your practice, ask these questions:
What is your equity value?
Your practice has valuable assets like computers, equipment, and real estate. When considering the sale value of your practice, however, you also need to consider the value of the work you have done to build your practice. The relationships and contacts you’ve developed over the years are extremely valuable. Don’t discount these intangibles when calculating what your practice is worth.
What is happening in your market?
Be sure to examine what is happening in your local market. Are hospitals moving to consolidate? Are new freestanding facilities opening? Are there legislative changes on the horizon that will impact you? With all the uncertainty in healthcare today, it’s impossible to predict the future, but a close examination of market forces will help you decide whether it’s better to sell in the near future or wait a while.
Do the benefits outweigh the risks?
In today’s healthcare environment, many smaller medical practices find it difficult to maintain profitability. Partnering with a larger medical group can give you greater access to resources and infrastructure you may not otherwise be able to afford. Larger groups also have more bargaining power with insurance companies when negotiating reimbursement rates.
However, you may find your practice is well situated in your market to withstand these pressures. A smaller practice is also more agile and better able to respond to changes in the healthcare landscape.
A careful risk/benefit analysis helps you decide when and how to move forward.
What are the options?
Knowing your options is critical, and it can be difficult to determine them all on your own. Fortunately, you don’t have to go it alone. We are here to help you determine your equity value, assess market forces, conduct a risk/benefit analysis, and consider all your options. If you are thinking of selling your practice, contact us to find out how we can help.