Sell a Medical Practice: Prepare Collections, Clinicians and Buyer Conditions

Build a service-to-collection evidence file

Separate the actual clinical, ancillary and other offered activities by consistent period, clinician and location. Trace completed services to invoices or claims, contractual reductions, denials, refunds, settlements and receipts. Explain cash versus accrual timing; a charge and its later collection are not two revenues. Have appropriate billing/accounting professionals investigate unresolved differences and overpayment questions.

Prepare receivable aging with subsequent receipts, disputes and collection costs. Reconcile clinical/support payroll, supervision, premises, equipment, supplies, software, billing and shared overhead. Identify any owner work omitted from those costs. Use the medical-practice value guide to distinguish supported earnings from patient counts, billed charges and broad market statistics.

Document permanent clinicians and actual buyer conditions

Map owner treating, supervision, management, scheduling and referral-contact duties. Verify available appropriately credentialed people, capacity and recurring compensation/benefits using the coverage worksheet. A seller’s temporary employment or an associate’s name is separate from continuing capacity. Present actual referral and patient-choice evidence using approved aggregate information; avoid promising future visits.

CMS describes Medicare enrollment and keeping provider information current.

Where relevant, determine the provider type and appropriate contractor. Review the proposed entity, clinicians, services, location and each payer individually with advisors, authorities and payers. Record applications, consents, dependencies and actual status. A seller’s enrollment or payment history does not establish every buyer’s billing.

Prepare the actual arrangement for professional review

OIG treats Stark and Anti-Kickback Statute analysis separately.

Have healthcare counsel assess proposed ownership, purchase consideration, compensation, referral relationships, management arrangements and continuing employment under applicable federal/state rules. Define the valuation work the arrangement requires with counsel and a qualified valuation professional. A price opinion does not replace review of the complete arrangements.

Use the consent register to document premises use, assignment, renewal, rent, landlord consent and payer/vendor change conditions. Inspect actual equipment, leases, maintenance and investment needs appropriately. Neither an MSO label nor a familiar payer settles the specific buyer’s rights. Use the acquisition conditions guide to organize outstanding questions.

Define records, care duties and offer scope

HHS describes conditions on health-data use/disclosure and safeguards.

Have privacy counsel determine permitted evidence/access, custody, retention, notices and system migration. Begin with approved aggregate material. An NDA alone is insufficient grounds to upload identifiable patient files. Record actual EHR/vendor rights and controlled access; a chart count is separate from future collections.

SBA sale guidance addresses agreement assets and liabilities.

Define included/excluded receivables, claims, recoupment questions, deposits, prepaid services, open orders, refunds and continuing patient/service duties using the delivery guide. Identify who collects, performs and funds each. Compare cash, obligations, actual conditions and required investment. Preparation should resolve evidence gaps; it does not guarantee a fixed price uplift or closing date.