Guidelines For Selling A Medical Practice

Selling of a medical practice can be done effectively if you follow a series of phases logically without omitting any steps. It includes the phases, such as appraising the practice; identifying the requirements; advertising the practice; arranging for the interviews; preparing the earnest money contract; negotiating the deal; removing the contingencies and preparing the closing documents.

Practice transition is not an easy task. Medical practice for sale involves certain steps. You can achieve a successful sale of the medical practice by the arrangement each of these steps carefully.

o Appraising the Practice:  First of all, you need to assess the value of the medical practice. This can be done through comprehensive appraisal that assesses the fair market price of the practice. For the assessment it involves information such as hours worked, call coverage, the tenure of the staff, overhead expenses, competition, gross income, the hospital admits, referral lines etc.

o Identifying the Requirements: The next step is to analyse the requirement of a service in the community. The patients can then identify a sub-speciality service that in turn can boost a practice. This certainly enhances the marketability of a practice. You can then identify and contact the niche physicians who would be interested in that medical practice.

o Promoting the Medical Practice: The third step is contacting the required physician through direct mail, physician files, advertisements in the specialty journals, cold calls, etc.

o Arranging Interviews: You have to then make arrangements for the interviews with the interested physicians and discuss all important matters elaborately.

o Preparing the Contract: It includes all the proposals in writing and the aspects of the transactions from the tax allocations to the introduction period.

o Negotiation of the Deal: It is important to negotiate the terms and the price of the transaction to create a favourable situation for both the prospective buyer and the seller.

o Removing Exigencies: It is mandatory to eliminate all types of emergencies related to a particular event, such as CPA reviewing financials, the arrangement of the adequate financing etc.

o Preparing the Closing Document: It is important to prepare the closing document that contains all the terms that both the parties agree upon.

If you are interested in selling a medical practice, you should get in touch with the Jardine Ludbrooke Brokers. It is a company owned by David Ludbrooke and Nicky jardine that offers assistance in selling, buying, establishing, financing and managing medical practices.

Tips On Selling A Medical Practice: Mistake To Avoid

Selling your small business, including selling a medical practice presents a number of challenge to owners and many will certainly make some mistakes as a result. It can be very bad to reap lower benefits from your business than expected, after spending a lot of time and money on it.

Here are a few tips on mistakes to avoid if you have a medical practice for sale or are selling a medical practice:

1. Not planning ahead: Selling a medical practice and any other small business could take you about two to four years. You need to prepare well by updating records, keeping business history and sales portfolio, doing sales promotion and adding in stock. Many business people make a mistake of doing nothing as they wait for a customer, yet it could take a long period to find a serious buyer. You do not know when a customer comes in but if he or she does not come, you should be prepared to go on.

2. Not finding the right person to represent your business: A good broker can assist when you have a medical practice for sale or when selling a medical practice. However, do not go with the first person who offers to promote or list your business first. Take time and find the right person, otherwise, it might cost you time and money.

3. Thinking that promoting your business is not necessary: While doing it yourself can be daunting and take time, do not assume that it isn't necessary. Of course, you should take the advantage of promoting it now to make the most out of it, instead of loosening up because you are quitting it. If you feel less motivated to promote the business, just find a third party or broker to do it for you.

4. Asking too little or too much: Valuing your business should be a great priority if you are unsure of how much to ask for. Do not rush into the temptation of asking for too little to get instant cash or because you want to quit fast: you would rather find some other source of capital to help start another business but get the most out of your previous investment.

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.

All About Medical Practice Marketing

The health care industry is massive and is growing at an exponential rate. There are many hospitals who are engaged in buying medical practices from the physicians. Medical practice marketing done on a regular basis helps to enhance the success of your practice and keeps it running efficiently. 

Below discussed are certain tips that you can consider when you plan for medical practice for sale:

1. The EHR System is of More Value Than the Paper Charts: Get your paper charts converted into EHR system, which will facilitate the negotiation.

2. Value of Diverse Marketing: The society has become highly technical these days with smart phones nearly in everyone’s hand. Thus the marketing strategies to be chosen must be diverse in nature and both online and print marketing helps the physicians in reaching more number of audiences.

3. Your Website Must Look the Best: This is one of the best marketing tools that can be used. A dynamic website always develops and helps to add value to the existing patients and is a forum to let people know about the new developments in your field.

4. Consider More Than One Bidder: When you are planning to sell your medical practice then you must be considering more than one prospect. Firstly let the key hospital administrators know about your plans. Another option is your competitors. You can contact them and discuss your plans with the practitioners of your field.

5. Transitional Marketing Services: You can offer to introduce the new owner to the hospital administrators and to the new patients for a period of three to four months after the sale of your practices. This adds value to the sale and reflects your support for the new owner in establishing his position.

6. Sell Your Practice And Negotiate Your Employment Agreement: You can agree to continue practice as an employed physician even after the sale medical centre. In such a case you must negotiate a compensation plan based on your own performance and not on the performance of the new owners. You must always be paid as per your efforts as a physician.

It is important to calculate the worth of your medical practice and then prepare succession plans for the sale of your practice. 

The Importance of Using Modern Technology and Latest Medical Tools in Medical Industry

In these modern times, providing the best possible care for patients with latest state-of-the-art equipment related to medical and dental industry is crucial. We need periodic health check-ups and dental care to maintain a robust lifestyle. People seeking various medical treatments can now rely on modernized technology and new hi-tech devices to get diagnosed and treated in hospitals and private clinics. With medical practice finance easily available, medical industry is flourishing by leaps and bounds.

Numerous therapeutic procedures that were handled previously by big hospitals or government laboratories can now be accessed through private clinics and medical centres. This is possible due to ultra-modern technologies and effective high quality equipment. When such special care and medical facilities are available at local medical centres, more and more people are seeking medical care from local and convenient private clinics. Medical practitioners and specialists are realizing the importance of replacing their old and outdated medical equipment with new latest gadgets and equipment's. Medical equipment finance comes in handy towards the same.

Some of the advantageous of modern state-of-the-art medical tools are as follows: 

• Doctors and healthcare providers can attract more people who are seeking health  check-ups 
• Patients find it extremely convenient to discover quality medical centres in their own locality 
• Patients get superior medical treatment for affordable fees structure 

• Modern medical equipment are relatively painless, thoroughly efficient and provide accurate results 
• Diagnosis and treatment with latest tools by healthcare providers helps ascertain their quality standard of care towards the well being of their patients

• It also helps in maximizing the profits in any medical practice centre, wherein they are providing hi-tech facilities within their own boundaries instead of offering outside references to patients. 
• The young generation is easily influenced by doctors or dentists using new equipment and latest technology, it helps to select the best healthcare provider. 

Healthcare providers and physicians desiring to catch the attention of new patients should take the help of modern innovative technologies and sophisticated gadgets to offer better services and care. Nowadays, most people are educated and knowledgeable. They know the difference between old outdated techniques and new innovative procedures in the medical field. People prefer going to a healthcare facility, which can provide them with all the latest equipment, specialist doctors, and real value for money spent.