Individual and small physician practices are becoming less and less common as large healthcare organizations are buying them out and as younger physicians tend to gravitate towards such organizations. This trend has led many self-employed physicians and small groups to debate whether now is an optimal time and environment to sell their practice.
There are a number of factors to consider while contemplating the sale of a medical practice:
• What are your primary reasons for selling the practice?
• What positive aspects of your current situation will you be giving up by selling your practice (such as flexibility and independence)?
• Have other physicians in similar situations had positive experiences selling their practice?
• What is your relationship with the management of the healthcare organization to which you would sell your practice?
• Will you receive the amount your practice is actually worth?
• How would your specific practice fit into the overall structure of the hospital or organization? Is your practice area already well-established or are they using it to fill in a gap in services?
• Will you be employed by the hospital or a third-party entity?
• What will be the scope of your decision making rights concerning your practice after it has been acquired?
This is a basic list of questions to consider and answering them may provide a good start as to deciding whether to sell your medical practice. It is an important decision with lasting consequences as the whole structure of your employment may change. For more information in connection with selling your medical practice or any other healthcare law related issues, please contact the VC Law Group at info@thevclawgroup.com or 858.519.7333.