ANSWERS · PRACTICE FINANCE

How do I value and sell my medical practice?

A practice's value is driven mostly by its normalized earnings — often a multiple of EBITDA or seller's discretionary earnings — adjusted for payer contracts, growth, and how transferable it is without the owner. Cleaning up the financials before a sale, by collecting what you're owed and tightening overhead, directly raises the number.

Practice Owner

What actually matters

  • Value is largely a multiple of normalized earnings, adjusted for risk and growth
  • Payer contracts and rates are a major value driver and a diligence focus
  • Buyers discount owner-dependence — transferable systems raise the multiple
  • Clean up A/R, denials, and overhead before you sell, since leakage lowers both earnings and the multiple
  • Get a professional valuation and an advisor involved early

Common questions

What is a medical practice worth?

Typically a multiple of normalized earnings, varying by specialty, payer mix, growth, and owner-dependence. Uncollected revenue and messy A/R lower the number a buyer will pay.

Where Volari fits: Recovered denials and underpayments flow straight to normalized earnings — the number a buyer multiplies — so cleaning up leakage before a sale can pay off twice.

Related answers
How do I know if I'm being underpaid by insurers?In-house billing vs. outsourcing: which is right for my practice?How do I renegotiate payer contracts for better rates?How do I hire and keep a good medical biller?How do I survive a payer or Medicare audit?Is my practice financially healthy? The benchmarks that matter.

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