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5 Reasons Buying a Practice is Preferable to Starting a New One

If you are considering running your practice, one of the first questions that might pop in your mind is: should I start a new one or buy an established practice.  In this article, we’ll take a closer look at the age-old dilemma of buying an existing practice versus starting a new one from scratch. 1.

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Who buys practices?

Hospitals have been the top practice acquirers since Obamacare started, and often the easiest purchasers to sell to.  Unfortunately, hospitals usually will only pay the fair market value of your practice’s assets, and nothing for its intangible “goodwill” value. Hospitals do this to avoid government charges that they violated the law by “paying for referrals.”

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