If the practice has an established track record of financial success in achieving greater income than other physicians in the specialty, it may hold ongoing value for the buyer.
The worth of an established medical practice varies greatly. In transactions involving the transfer of practice ownership from one physician to another, the value of the practice is generally tied to the potential income it can produce for the buying physician. This is true for both practice purchases and practice buy-ins. Of course that income will not likely come simply by purchasing the practice – it requires work to earn it. As a result, the buying physician should factor in some return on the investment made to have the opportunity to generate a greater income, presumably faster, and with less total cost, than if the physician passed on the purchase and started a new practice altogether.
-
CAREERS | CONTACT US:
