How Do You Evaluate a Medical Practice for Sale?

how do you evaluate a medical practice for sale

Are you thinking of buying a medical practice? If so, it’s important to know what to look for. Practices can be expensive, and you want to ensure you get good value for your money. In this blog post, we will discuss the factors you need to consider when evaluating a medical practice for sale.

Look At Their Books

The first thing you need to do when evaluating a medical practice for sale is to look at their books. This includes their financial statements, tax returns, and other financial information. You want to ensure that the practice is profitable and you’re not overpaying for it.

With the books in front of you, consider how you will expand the company. Will you hire more providers, add or reduce staff, or modify the practice model? How patient are you going to be with the business’s financial growth?

The answers to these questions will help you determine if the medical practice is a good fit for you.

Consider The Location

Another important factor to consider is the location of the medical practice. Is it in a good area? Does it have ample parking for patients and staff? Is it easily accessible? These are all essential factors to consider when determining if a practice is a good investment.

The location of the practice can also affect its value. Can your staff afford to live in the area or will they be facing a long commute?  This will affect hiring and wages paid. If it’s in a desirable area, it will likely be worth more than a practice in a less desirable area.  

Make Sure They Are Compliant with Healthcare Laws and Regulations

When evaluating a medical practice for sale, you also need to look at its compliance with healthcare laws and regulations.  This includes things like HIPAA compliance,  payor requirements and accreditation.  Have any of the officers or personnel been excluded or 

suspended from participating in any Federal Health Care Program? Has the practice  

Has the practice been the subject of a “security incident”, breach or any other violation of 


You want to ensure that the practice is compliant with all relevant laws and regulations. This will protect you from liability in the future and help you avoid any potential problems.

Evaluate The Staff

When you’re evaluating a medical practice for sale, you should also consider the staff. Do they seem happy? Do they get along well? Do they seem like they know what they’re doing?  Are there employment agreements in place with the key employees?

You want to make sure the staff is friendly and knowledgeable. They should be able to answer any questions you have about the practice. If they can’t, that’s a red flag.

Evaluate Their Patients

Finally, you should consider the patients. Are they happy with the care they’re receiving? Do they seem to like the staff? Do they come back on a regular basis?

If you can answer these questions, you may have found a good medical practice for sale. If not, you may want to keep looking.


These are just a few of the factors you need to consider when evaluating a medical practice for sale.

Hiring a medical practice broker like Strategic Medical Brokers can reduce the stress of buying a medical practice. With so much on the line, it’s important to do your due diligence and make sure you’re getting a good deal.