Selling Your Cardiology Practice
Like many other medical practices, cardiologists are under pressure from the government, insurance agencies and patients themselves to provide high-quality service at a lower cost. When it comes to selling a cardiology practice, it means that you must be more prepared than ever to present your best to your buyer: why you stand apart from your competition, how you have been and plan to be profitable going forward, and why your business is poised for growth.
While hiring a business broker is the best way to ensure you find the best buyer at the right price and have all of your legal bases covered, you should be prepared before you even approach one so that your business will sell quickly, and the process will be as painless as possible.
Cardiology Practice Growth Factors
The growth of a cardiology practice really comes down to four simple things, and those can be easily showcased to your buyer. They are:
- Reputation: The reputation of a practice and referrals is one of the keys to profitability and growth. This can be illustrated by online review ratings, and if you plan to sell soon, you may want to engage in a reputation management and review gathering campaign.
- Cost: The cost of services is often determined by either the government provider like Medicare or Medicaid or the insurance companies. However, they are not totally out of the control of the practice, so be sure that costs cover the cost of doing business plus a healthy profit margin.
- Operational Efficiencies: This includes things like administrative staff, diagnostic equipment, office space, and other expenses. Groups or large practices have an advantage in this area, as they can leverage sharing these costs and operating more efficiently.
- Expertise of Doctors and Staff: The more expertise your staff has, the better it is for your reputation and profitability. This is often where specialization becomes a factor. If you are the only specialist in your area or one of only a few in your field, you will have a district advantage.
This is often where the evaluation of your buyer comes in. Making sure they are qualified to run your practice and provide the same level of care you do to your patients is key to their future growth and satisfaction with the purchase of your business.
Cardiology Practice Competition Factors
Cardiology Practice Competition FactorsWho are your competitors? If you are in an urban area, you may have several direct and indirect competitors, but if you are in a more rural area, you likely have little if any competition at all.
When selling your business, you want to address this competition factor and let the buyer know what sets you apart from those who provide similar services. For instance, general practitioners might also handle cardiovascular meds and other simple cardiovascular issues. You might even have other cardiology practices in your area.
However, do the demand for cardiology practices, this is often not a factor at all. Demand is related to rates of cardiovascular disease which are in turn determined by obesity rates, age, and other demographic factors. Be sure to have this data gathered and ready to share with both your business broker and buyer.
Technology and Telemedicine in Cardiology Practice
What if you could monitor patient conditions in real time from a distance? What if you could see patients outside your area using technology? The advances in telemedicine and remote monitoring mean that this is not only possible, but it is making the job of the cardiologist easier. If you are not using this technology yet, you might want to implement it before you sell, or even during the selling process. This foundation makes your practice even more viable.
The same is true of EMR and Information Technology. The transfer of patient records can be tricky, and in many cases requires patient consent. This is why having the buyer work with you for a while before the purchase and introducing them to the patients and practice policies is often one of the best ways to sell any medical practice.
Marketing and Profitability
How many of your patient are regular patients, and how many new patients do you see on a regular basis? This is affected by your marketing and may directly affect your profit margin. How do you attract new patients, and what is the structure of your practice? These are important factors to your buyer.
Also, you may have to talk to your accountant or the financial team of the business broker you choose. Often books are structured for the best tax advantage, but they need to be “recast” to show the true profitability of your practice, and what your income actually is. The more profitable your practice, the more marketable it is.
Selling any medical practice is different than selling any other business. The buyer must often meet certain qualifications and they must be able to run your practice when you leave. Often an overlap where you work for them for a while or they work for you before they make the purchase can make the transition easier for patients and staff alike.
Have questions about selling your cardiology practice or need help finding the right buyer? Contact us here at Rogerson Business Services to see how we can best help you today.
