Getting ready to sell a medical practice is a big step. Whether looking towards retirement, a volunteer focus, or other endeavors it is important to take time and care when going through this transition. When done wisely you can not only get a decent price for the practice but also help it to transition successfully so your hard work can continue to benefit the community you served.
#1: Think about potential buyers
Potential buyers could include a new physician looking to start their own practice, a small group looking to merge, a large specialty group, or a hospital. Not surprisingly, sellers can get the best offers when there is more than one potential buyer. One way to get the interest of more than one potential buyer is to consider letting your hospital administrator and local competitors know about your intent to sell.
#2: Remaining on staff or a short time can prove beneficial
Established physicians can also sweeten the deal by offering to stay on for a set period of time to ease the transition. This can offer valuable mentorship opportunities for the new owner as well as marketing benefits as you can help introduce the new physician(s) to the already established patients, hospital administrators, and other key contacts.
#3: Organized records and documents can help the deal move forward
Having relevant documents ready can help better ensure the process moves along smoothly. These documents can include Articles of Incorporation, Bylaws, Operating Agreements, Shareholders’ Agreements, Leases, Payor Contracts, Employment Agreements, Financial Statements, and Intellectual Property Licenses. The exact documents will vary depending on your practice.
It may also be beneficial to switch to an electronic record system if you have not yet done so.
#4: Do not forget the legalities
It takes more than due diligence and transaction documents drafted to your deal to make sure things move forward smoothly. It is also important to review regulatory matters like any past, present, or ongoing issues with Stark Law, Anti-Kickback, False Claims, or other potential violations as well as any pending audits.
Attorney John Rivas is responsible for this communication
