Current market conditions for private practices
Consultant's Corner - Q&A with the Industry Experts
Question: Describe the current market for selling a private medical practice.
"Overall it has improved. Buyers are less fearful and more confident in the healthcare market. Sellers are less fearful too. Of course, healthcare reform will continue to change the market dynamics but I view it like any other market force out there. And there will always be entrepreneurial physicians who will find ways to thrive within the private practice environment."
Question: How is it playing out for different specialties?
"Certain specialties are more in demand: Family, Internal Medicine, Pediatrics, Urgent Care. This is in part due to a greater emphasis on primary care as well as more money flowing into programs. Medicaid rates moving on par with Medicare rates also helped. Overall though, this shift is based on the expectation that more beneficiaries will be paying into the health insurance system. The sustainability of this trend is predicated on the solvency of the insurance risk pools. We'll see how it plays out. The good thing for our clients is that we constantly have our ear to the street, and can best position them and their practices based on the changing market dynamics."