Wednesday, 29 March 2017

The Procedures Involved in Selling a Medical Practice

Why do some doctors or physicians think about selling their medical practice? Well, there can be several reasons behind this decision. Nowadays, more and more physicians are selling their practice to hospitals or large medical centres, thus entering the employment category with a single purchaser for enjoying a secured lifestyle and a fixed salary. The sale of their medical practice entirely depends upon the physician, while some may opt for a sale to concentrate and spend quality time with patients rather than getting hassled about the monetary benefits.

Many doctors sell their medical practice when they reach their retirement age so that they can continue with the profession. Medical practice for sale is seen as any other business transaction by the health care law. All practicing physicians have to find legal assistance through reliable lawyers to get maximum value for their practice.

Preparation of sale and value of medical practice:

Selling a medical practice is not a simple or fast process. It may involve years of planning and consultation with reputed attorneys to ensure that as a professional doctor you gain a good valuation of the medical practice and have not been victimized to sell the practice in hostile conditions and a poor price. For that purpose, you require a team of specialists or professionals that include lawyers, accountants, and appraisers for correct health care associated transactions.

It is the efforts of these experts that can help in securing maximum value for a medical practice sale. The actual value of any medical practice is decided by 3 main categories of assets.

They are as follows:

1. Tangible medically related assets like furniture, equipment and fittings, examination tables, etc.

2. The revenue received by the physician prior to the sale of the medical practice.

3. Goodwill assets that include the physician’s reputation, the medical trainees working under him, the total practice history, and the main area of practice.

There are certain methodical procedures, which help in determining the real value of a medical practice and the tax plans for categorizing all the assets upon the time of sale. All these points have to be discussed with the hired team of professionals.

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