Plan ahead if selling a practice

Q: I am interested in selling my family practice so I can retire. I approached the chief executive officer of a local hospital and was advised that the hospital does not buy practices. What is the best way to sell a practice? Is it similar to finding an agent to sell a house?

Although some business brokers do sell practices, it is more common to work with a handpicked team of advisers that includes your accountant, healthcare attorney, and practice consultant to guide you through this challenging process.

Next, develop a list of potential buyers/practices, ones that would allow you to merge into the practice for a period of time. Or, approach local hospitals that have employed physician groups, and review their model of employment to determine whether you could work in that model for a period of time. You will need time to transition your practice, and the more time you have before you officially sell, the easier the process will be.

Answers to our readers' questions were provided by Thomas J. Ferkovic, RPh, MS, managing director, SS&G Healthcare Services LLC, Akron, Ohio.