Tips For Buying a Healthcare Practice in Florida
Medical Businesses for Sale in Florida
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Over the past five years, Florida’s healthcare industry has seen considerable growth. With an estimated market size of $57.2 billion, it’s considered to be one of the best healthcare markets in the US, including several variations of medical assistance and aid.
Are you planning on purchasing a medical business in Florida?
Here are a few things you should do first. See our tips for buying a healthcare practice in Florida.
Review the Financial Records
Before you proceed to purchase a medical practice in Florida, you need to review the books and assess the assets as well as the liabilities that come with the move. This is important for understanding the current business growth and progress, and evaluating how the practice can be sustained.
It’ll also enable you to get a measure of exactly how the employees-existing and potential-are to be compensated for their services, how patient accounts need to be managed moving forward, and if there’s a need for further investment in the practice once you’ve purchased it.
With the financial records in front of you, you’ll be able to better evaluate how you can contribute to the growth of the medical practice at hand. It’ll help you think of new business strategies, if necessary, and determine which old business practices currently adopted at the medical business can be continued.
For example, will you need to hire or let go of more healthcare workers? Will there be a need to reach out to more medical insurance companies? Is the estimated business growth going to be a long and patient process?
In addition to this, reviewing the practice’s financial records will also give you an insight into their operations and the potential challenges that lie ahead. If, for instance, a majority of the workforce is aged and nearing retirement, then pretty soon, you’ll need to hire replacements to compensate for their absence.
This can be quite a tedious process that may even result in reduced profit as you might not be able to find healthcare workers that are as experienced, or you might have to invest in additional training procedures. You’re also likely to experience a dip in the consistency of services by hiring multiple new employees.
Thoroughly reviewing the books is extremely important in building a deeper understanding of the business you’re about to purchase. While you may not be able to access each and every document at this point, try to dig up as much information as legally possible so that you’re better prepared for what lies ahead.
Evaluate the Practice’s Patients
See our tips for buying a healthcare practice in Florida
Another thing you need to go over before buying a healthcare business is to evaluate the nature of their services and the type of patients that come to the practice for medical assistance.
For instance, if the practice offers a range of specialized services but is especially known for its physiotherapy services and chiropractic care, then the most number of patients are likely to be those seeking physical therapy or chiropractic services. This means you need to be extra careful with your future plans for the physiotherapy department, as meddling with it can result in a loss of patients, thus affecting business.
You should also take a closer look at the insurance providers the practice typically deals with when treating patients, keeping in mind the Affordable Care Act. Since you’re buying an existing medical practice as opposed to starting one on your own, you’ll have to keep in mind the patients’ existing concerns and preferences before you start improvising.
It’s important to maintain good relationships with the insurance providers, vendors, and other third-party services that have helped the practice build a strong reputation and gain more customers.
Calculate Potential Rifts a Change in Ownership May Cause
If the current owner of the medical practice is a physician at the facility himself, then it’s quite possible that they will leave the practice once it has been sold. If they were personally involved in treating patients, then this can lead to yet another challenge: the loss of patients who’d specifically seek treatments from that physician.
What percentage of patients are you likely to lose if the owner of the medical practice leaves? It’s not uncommon for patients to follow their preferred physicians from one medical facility to another, just so that they can be reassured of getting the type of treatment they were used to. If such a scenario is unavoidable, then you need to be prepared for the potential decrease in patients.
What about the key staff members at the practice; are they likely to be affected by the change in ownership as well? Are there any physicians, nurses, or other staff members who’re not going to take the change well, for whatever reason?
The last thing you want is a bunch of unhappy medical staff at your practice, or have some of the best physicians on the team leave the practice altogether. You need to develop a strong relationship with your soon-to-be medical staff, ensuring that their concerns are heard and addressed as efficiently and effectively as possible.
Have a transition plan ready before you make the purchase. This will ensure that the change in ownership doesn’t result in a mutiny of sorts and leave you having to deal with unexpected resignations and loss of patients.
If the current owner continues to work at the practice after the ownership has been handed over to you, the situation may be even trickier to deal with. Whatever the case may be, it’s wise to head in prepared. Consider all your options, weigh in potential disturbances the move may cause, and work on developing trustful relationships with the staff members at the medical practice.
There are more than 300 hospitals and clinics in the city, including some of the best ones in the US. This has led to the steady progress of the healthcare industry in Florida. The increased profitability in Florida’s healthcare industry also makes investing in a medical practice a smart business decision.