Medical practice valuation
Learn what your practice is worth, how the number was reached, and which parts of the practice carry its value. Physician Planning Partners introduces physicians to independent appraisers.
- Independent professionals
- Free introduction
- You decide who to hire
What is a medical practice valuation?
Medical practice valuation is an independent opinion of what a practice is worth, prepared by a qualified appraiser. It usually reviews earnings history, service and payer mix, provider productivity, facilities and equipment, contracts, and how much of the patient demand depends on the owner. Physician Planning Partners introduces owners to independent appraisers. It does not value practices itself.
A valuation is a decision tool, not only a sale document
Owners ask how to value a medical practice for many reasons: a partner buy-in, an unsolicited offer, a dispute between owners, lending, or simply knowing where the practice stands. The answer depends on why the valuation is needed, because the purpose shapes the method and the standard of value an appraiser applies.
Medical practice valuation looks different from one specialty to the next. Appraisers usually separate professional services from ancillary services such as imaging, lab, or therapy, and from facility interests such as an ambulatory surgery center, which are often held in separate entities. They also weigh payer mix, provider depth, and how much of the practice depends on the owner. A medical clinic valuation and a physician practice valuation follow the same core methods.
What a practice appraisal typically reviews
Earnings history
Several years of practice performance, adjusted for owner compensation and one-time items.
Service and payer mix
Which services, payers, and clinic visits, procedures, and ancillary services produce the revenue, and how stable each source is.
Providers and productivity
How work is spread among physicians and advanced practice providers, and who depends on whom.
Facilities and equipment
Leases, owned space, equipment condition, and any facility, ancillary, or real estate interests.
What makes medical practice valuation different
Professional and ancillary revenue
Professional services and ancillary lines are often reviewed separately.
Compliance structure
Ancillaries that fit within Stark law exceptions are easier for buyers to accept.
Facility interests
ASC or real estate shares usually have their own valuation and transfer limits.
Payer mix
Contract terms and payer concentration affect how stable revenue looks.
Frequently asked questions
How do you value a medical practice?
Appraisers usually combine more than one approach, such as an income approach based on expected earnings and a market approach based on comparable transactions. They adjust for owner compensation, one-time expenses, and the share of patient demand that depends on the owner. A clear report explains each step so you and your attorney can follow it.
What is a practice appraisal used for?
Common uses include partner buy-ins and buyouts, sale planning, lending, disputes between owners, and matters handled by family or estate counsel. The purpose matters, because it can change the method and the standard of value. Tell the appraiser the purpose at the start so the report fits how it will be used.
How long does a medical practice valuation take?
It depends on the size of the practice and how quickly records are available. Gathering documents is often the slowest part. Ask the appraiser for a timeline based on your practice, and ask what you can prepare in advance, such as several years of statements, payer reports, provider schedules, and leases.
Is a healthcare business valuation different from other business valuations?
The core methods are similar, but healthcare valuations also consider fair market value rules, referral laws, payer contracts, and licensing. A physician buy-in or sale that involves referrals or ancillary services should be priced at fair market value. Choose an appraiser with healthcare experience, and have a healthcare attorney review the result.
Is Physician Planning Partners an appraisal firm?
No. Physician Planning Partners is an introduction service. It does not value, appraise, or broker practices. It connects practice owners with independent appraisers who value medical practices. The professional you choose works for you directly, explains their own scope and fees up front, and is responsible for the work they deliver. You decide whether to hire them.
What does the introduction cost?
Nothing. Physician Planning Partners does not charge physicians for the introduction. If you hire the professional, you pay them directly, and they explain their scope and fees up front. Physician Planning Partners may receive compensation from partner businesses, as described in the site disclaimer. You are never obligated to hire anyone you meet.
More practice valuation and growth services
Related reading: selling your practice
Practice Valuation & Growth
How medical practice owners understand value, compare performance, and plan growth with independent professionals.
Back to Practice Valuation & Growth →Practice Valuation
An independent appraisal of what your medical practice is worth, how it was measured, and why.
Explore practice valuation →Value Driver Assessment
A structured look at what raises or lowers the value of your medical practice, and what you can change.
Explore value drivers →Practice Benchmarking
A comparison of your practice against similar medical practices on the measures that matter to owners.
Explore benchmarking →Growth & Expansion Planning
Planning new providers, locations, service lines, or facility access at a pace your practice can support.
Explore growth planning →Practice Operations Review
A review of staffing, scheduling, revenue cycle, and the systems behind your medical practice.
Explore operations review →Know what your practice is worth, and why
Take a 2-minute check and request an introduction to an independent appraiser who values medical practices.
Take the 2-minute Practice Planning Checkor call (972) 616-4581
Physician Planning Partners is an introduction service connecting physicians with independent professionals. It does not value, broker, or buy practices. General education, not legal advice.
Copyright 2026 Physician Planning Partners. All Rights Reserved. Disclaimer. Physician Directory
Educational purposes only
Content on this website is for informational and educational purposes only. It is not legal, tax, accounting, financial, insurance, or medical advice.
Who we are
Physician Planning Partners is a marketing and introduction service. It is not a CPA firm, law firm, RIA, broker-dealer, bank, or insurance agency. It does not provide tax, legal, financial, estate, exit, or insurance advice.
Specialty sites
Linked specialty sites (including Plastic Surgeon Planning and the other physician sites on this page) are product sites under the same company. They are not separate licensed firms.
Introductions
This site and the specialty sites may introduce visitors to independent licensed professionals. Those professionals work under their own licenses and their own engagement letters. Any engagement is solely between the visitor and the professional they choose. Physician Planning Partners is not a party to that engagement and does not supervise or review the work.
No endorsement
Inclusion or introduction is not an endorsement and is not a representation of specialty competence. You must do your own due diligence. You may hire any professional you want.
No guaranteed results
No tax savings, legal outcome, deal price, investment result, or other result is guaranteed.
Compensation
Physician Planning Partners may receive compensation if an introduction leads to a paid engagement. That does not make this company a party to the professional relationship.
Please seek advice for your specific situation from a licensed professional you choose.