Medical Practice Valuations
There are a number of occasions that require the formal valuation of your medical practice, such as death, divorce, sale of all or part of the practice, disability, etc. There are also times that will arise where it will be advisable or desirable to valuate your practice
Our medical practice valuation process is the same regardless of the triggering event. We look at the value of the practice from a number of perspectives and calculate the value in several ways, each of which is valid and according to normal accounting standards. We then take a blend of these various methodologies to determine the most optimal approach.
It is Consolidated MD’s recommendation that every practice should have an initial medical valuation with periodic updates for several reasons. If the practice valuation has been performed and kept up to date, then all parties are able to plan and anticipate the financial consequences resulting from any triggering event.
Medical Practice Valuations performed after an event such as death, disability, etc., become personal. Medical practice valuations performed before the triggering event are evaluated logically because the parties do not know, at that time, whether they would be in the position of buyer or seller and can therefore look at the value more objectively.
In the event of the death of a solo physician, we believe the updated medical practice valuation, coupled with a document designating Consolidated MD (or whoever has specific knowledge of the practice and its value) should be contacted immediately to initiate a process of transferring (selling) the practice before its value drops significantly. If we are familiar with the practice and have already done the medical practice valuation, we can immediately put it on the market and get the top possible price. The longer a practice sits without a physician or even with a locum tenens provider, the lower its value becomes.