You’ve poured your heart into building a thriving Medicare-focused practice right in the Sunshine State. Years of late nights, patient chats, and navigating reimbursement mazes have paid off. Now, thoughts of retirement, a fresh start, or cashing in on your hard work bubble up. Selling a Medicare-focused practice in Florida can unlock that next chapter, but it demands smart moves to maximize your payout and sidestep pitfalls.
Medicare-Focused Practice in Florida: An Overview
A Medicare-focused practice centers on providing care primarily to seniors covered by Medicare, including routine exams, oversight of chronic diseases, and preventive services. In Florida, these practices flourish due to the state’s large elderly community, drawn by sunny climates and retiree-friendly policies.
Florida is a powerhouse for the Medicare population. The numbers tell a compelling story. As of 2023, Florida was home to over 4.8 million Medicare beneficiaries. That is more than any other state except California.
The chart from KKF illustrates the steady growth of Medicare Advantage enrollment in the United States, increasing from approximately 8 million in 2007 to an estimated 34 million by 2025.
In Florida, where Medicare patients already exceed 5 million and form the backbone of numerous independent practices, this national trend translates directly into higher practice value. A Medicare-focused practice with a growing Medicare Advantage panel enjoys more predictable monthly payments, lower billing friction, and a stronger appeal to private equity buyers hunting scalable platforms.
For physicians eyeing a medical sale in Florida, the chart signals a closing window of peak demand: sell while the Advantage enrollment continues its upward trajectory, and your patient list becomes a premium asset in a consolidating market.
Understand the Practice Value and Structure
1. Asset Versus Stock Sale
When you sell a practice, your structure matters. The buyer may purchase the company’s stock or simply acquire its assets. An asset sale allows you to select which liabilities and contracts carry over. A stock sale means the buyer takes the entity and all its obligations.
In Florida, your preferences may conflict with those of the buyer. You must weigh tax consequences, liability transfer, goodwill, and contract assignment. Before listing your practice, consider consulting with a healthcare expert in Florida to clarify your financial standing, legal obligations, and transition roadmap.
2. Fair Market Value (FMV) and Goodwill
Establishing the correct value of your practice is essential. You need to identify both tangible assets, such as equipment, and intangible assets, including reputation and patient loyalty. If you operate under Medicare, you must account for how Medicare assets in Florida integrate into this value.
3. Use of Brokers or Intermediaries
Florida stands out by allowing non-physicians to own medical practices, opening doors to a diverse range of buyers. A specialized firm can connect you with the right buyer and help you package your opportunity. If you explore listing your practice through medical business brokers, you increase your access to buyers who understand the Medicare and physician-practice sale environment.
Key Legal Issues That Impact a Florida Physician Practice Sale
1. Licensing and Transfer of Medicare Assets
In a sale involving significant Medicare participation, you must ensure that your operation has a valid license to serve Medicare patients, typically through a Medicare provider number and enrollment. The buyer must assess whether a new entity requires a permit or if the current Medicare license is assignable in Florida.
If you own significant Medicare assets in Florida, it becomes vital to ensure a smooth transition of those assets to the buyer. Problems may arise if the acquiring entity is held liable as a successor for Medicare overpayments.
2. Fraud, Abuse, and Referral Laws
Florida and federal health-law rules apply to physician practice sales. For example, the federal Anti-Kickback Statute and the Florida Patient Brokering Act may apply if any component of the sale resembles payment for referrals. Also, the federal Stark Law may limit relationships after closing. These laws impose significant risk if overlooked.
3. Contract Assignments, Managed Care, and Licenses
You must verify whether your current contracts (e.g., insurance contracts or managed care arrangements) are assignable to the new entity. In most cases, contracts cannot be transferred without the consent of all parties. Also, the buyer must verify the needed licenses for the services you provide or refer out, especially if you operate ancillary services or share revenue.
4. Employee Issues and Transition
If you have non-physician employees, you need to plan for their transition, including whether they will stay on and how their employment agreements will be modified. You must also ensure that patient records are appropriately managed. Ownership of the practice may change, but your obligations to secure patient data remain.
Operational and Financial Considerations
1. Prior Financial Performance and Documentation
Buyers will want clear records of your practice’s revenue, payer mix, number of Medicare patients, and operational metrics. Clean bookkeeping and forward projections will build trust.
2. Exit Plan and Timing
If you serve a Medicare-heavy patient base, the timing of your exit may matter. To mitigate operational risk, consider adjusting your patient mix or billing approach before presenting to a prospective buyer.
3. Tax and Entity Issues
The sale structure will affect your tax outcome. Some sellers prefer a stock sale for capital gains treatment, while buyers often prefer an asset sale to limit their liability. Select your entity type (e.g., professional corporation, LLC) with an adviser in advance.
4. Buyer Criteria and Negotiation Points
Identify and screen potential buyers who understand Medicare licensing and the licensing requirements in Florida. You may negotiate the duration of your stay as a physician on site, provide a transitional employment contract, or agree to non-competition covenants. Each carries legal implications for Florida practices.
FAQs
Yes, private equity firms can own medical practices in Florida, as the state does not enforce a Corporate Practice of Medicine (CPOM) restriction. This permits corporations, investors, and other non-physician entities to own, manage, and employ physicians within medical facilities.
On average, Florida physicians who own their practices earn approximately $70,000 per year, depending on specialty, patient volume, and payer mix.
The sale price of a private medical practice in Orlando, Florida, is not fixed. It depends on the practice’s valuation, which is typically determined using multiples of earnings or revenue.
Key considerations include accurate valuation, Medicare license transfer, regulatory compliance, contract assignments, and structuring the sale in accordance with Florida’s healthcare and tax laws.
Wrap-Up
Selling a Medicare-focused medical practice in Florida can be rewarding with the right approach. You’ll need to handle valuation, structure, and negotiations carefully while staying mindful of legal factors, such as licenses, Medicare provider numbers, referral rules, and contracts. With a clear plan, trusted advisers, and proper transfer of your Medicare assets, you can lower risks and increase the likelihood of a successful sale.
If you are advertising a medical practice for sale in Florida, ensure your listing clearly states how it handles the transition of Medicare licenses. Contact Strategic Medical Brokers to help you value your practice, manage compliance, attract qualified buyers, and complete a smooth, successful transition.
