The master blog 1770

When physicians prepare to sell a practice, they often begin with the obvious numbers: revenue, overhead, physician compensation, payer mix, and recent profit. Those figures matter, but they rarely tell the whole story. Two practices can post nearly identical earnings and still attract very different offers. The gap usually comes down to one question buyers never stop asking: what can this business become over the next three to five years? That is where gr

Selling a medical practice rarely follows a clean, all-cash script. On paper, the transaction may look straightforward: determine value, find a buyer, sign documents, close. In real life, financing is often the deal. A strong associate physician may have the clinical skill and patient loyalty to buy the practice, yet fall short on cash. A hospital-backed group may move slowly through credit approval. A private buyer may qualify for part of the purchase price through a

When physicians talk about selling a practice, the first question is often, “What is it worth?” The better question is, “Why would a serious buyer want this specific practice?” Value follows attractiveness. A practice can show decent collections and still struggle in the market if it feels fragile, disorganized, or overly dependent on one person. On the other hand, a practice with ordinary profit margins can attract strong interest if buyers can see stable cash fl

A medical practice can look healthy on paper and still disappoint a buyer once they examine who the patients are, how they use the practice, and what that means for future cash flow. That is the heart of patient mix. Buyers do not purchase collections history alone. They purchase an earning stream that must survive payer pressure, staffing costs, provider transition, referral shifts, and demographic change. Patient mix sits in the middle of all of it. When people ta

Selling a medical practice is rarely just a transaction. It is often the financial summary of decades of work, reputation, staff relationships, referral patterns, and patient trust. The tax side of that sale can either preserve a meaningful share of the value you built or quietly erode it. I have seen physicians focus intensely on purchase price, then discover too late that structure, timing, and allocation mattered almost as much as the headline number. That is esp

When a medical practice changes hands, the lease can decide whether the deal closes smoothly, gets repriced, or falls apart in the final stretch. Buyers often spend their energy on collections, payer mix, staff retention, and referral patterns. Sellers focus on valuation, taxes, and timing. Meanwhile, the lease sits in the background until someone notices a consent requirement, a use restriction, a looming rent increase, or a personal guaranty that nobody pla

A medical practice sale rarely involves only charts, cash flow, and goodwill. The building, lease, or condo unit tied to the practice often shapes the economics of the deal just as much as patient volume or specialty mix. Owners tend to learn this late, sometimes after months of negotiation, when a buyer’s lender raises a concern about rent, a hospital-backed group insists on a lease restructure, or a real estate issue delays closing. That is why the real estate pie

When physicians prepare to sell a practice, they often begin with the obvious numbers: revenue, overhead, physician compensation, payer mix, and recent profit. Those figures matter, but they rarely tell the whole story. Two practices can post nearly identical earnings and still attract very different offers. The gap usually comes down to one question buyers never stop asking: what can this business become over the next three to five years? That is where gr