By Tony Siebel, MDVIP
Physicians choose to sell their practices for a variety of reasons. Some want the peace of mind of a steady income, while others simply want to focus on practicing medicine versus managing a business. Retainer-based physicians often choose to sell in preparation for retirement.
Retainer-based practices tend to be more marketable because of their steady revenue stream. But how does that translate into value? How do you determine what your practice is worth? And even more important, when you are ready to sell, how do you begin that process?
Some physicians may misjudge the answers to these questions and underestimate the complexity of the process. They have spent the majority of their career building a successful practice with seasoned staff and long-term patient relationships. So, the sale should be just as successful.
I have worked with physicians who struggled selling their practice by relying solely on the advice of their accountant and attorney. There is value in concierge-model practices, but they are not easy to sell without an experienced partner. Accountants and brokers may be familiar with medical practice sales; however, most are not specialized in retainer-based primary care. To put this in perspective, if you were selling your home, would you hire a real estate agent with a proven track record in your neighborhood or one who sells condos in a different zip code?
If you are thinking about selling your retainer-based medical practice, consider the following:
- Gather and review your financials, including income statement and balance sheet, accounts receivables and outstanding debt.
- Clean and declutter your office, just like when preparing to sell a home.
- Review your membership, third-party reimbursement and overhead structure.
- Evaluate the fair-market value with a trusted consultant who has expertise in retainer-based medicine.
- Consider how to reach and connect with a buyer.
- Identify the physician best suited to take over your practice. This is a consequential step.
- Possible buyers may include hospitals, large group practices or local physicians.
- Navigating and understanding state and federal law can be challenging. As an example, the sale and purchase notification requirements vary by state, as do patient continuity of care notices.
- Medical records should be part of the sale and remain in the practice, but make sure you are advised of your legal obligations.
Planning for your practice’s future takes time, preparation and investment. The sale of your practice validates that your time and investment were worthwhile and of great value personally, professionally and financially. If you have any questions or would like to discuss available opportunities, I can be reached @ Tel. 502-216-5655 or email firstname.lastname@example.org.
RELATED STORY | NATIONAL | AUDIO | LISTEN NOW
EP. 121 | DocPreneur Podcast | Eyes On The Road: An EXCLUSIVE Interview with Market Leader, MDVIP
Tony Siebel is the Director of Corporate Development at MDVIP, the largest national network of membership-based primary care physicians. He is responsible for growing MDVIP’s network of more than 850 primary care physicians. www.MDVIP.com If you’d like to talk privately about the specifics of your practice and what our acquisition opportunity could mean for you and your patients, feel free to contact me at your convenience (Call Tony Siebel @ Tel. 502-216-5655 or email email@example.com)