Selling a Hospitals And Clinics Business

Hospitals and clinics are usually priced off cash flow that the buyer believes will actually be collected, and that can be billed compliantly after close. Multiples vary by specialty and setting, but higher values tend to show up with stable payer contracts, low denial pressure, durable provider coverage, and a clean compliance paper trail. You can get a quick estimate with Rejigg’s free valuation calculator, then refine it using payer mix and revenue-cycle metrics.

No. You don’t need a broker to sell a hospital or clinic, and giving up 5–10% of the sale price rarely makes sense when the real work is running a tight diligence process and protecting confidentiality. Rejigg gives you pre-vetted buyers, digital NDAs, direct messaging, a secure data room, and offer comparison tools, so you can sell directly and stay in control.

Timelines usually get set by healthcare gating items, not buyer interest. Credentialing and payer enrollment can take 60–120 days, and licensure or accreditation change-of-control steps can add more time depending on your state, facility type, and payer mix. Deals move faster when you map these steps before going live. Rejigg’s preparation guide helps you build a realistic close plan early.

Often yes. Many outpatient clinics can qualify for SBA 7(a) financing when cash flow is steady and the buyer can show the clinic will run without the seller doing the daily work. Lenders still scrutinize payer concentration, denial trends, provider retention, and compliance history because those drive repayment risk. You can model monthly payments with the SBA loan calculator before you negotiate terms.

Buyers want financials, plus proof you can keep operating and billing after close. Expect requests for payer contracts and in-network status, enrollment and credentialing files, licenses and renewals, medical director or supervision agreements, denial and A/R reports, compliance and audit history, and key vendors like billing, clearinghouse, and EHR. Rejigg includes a built-in due diligence checklist and a secure data room to share everything safely.

A quality of earnings report is a buyer-style review that checks whether earnings are real, repeatable, and supported by evidence. In healthcare, that usually means tying your financial statements to collections and testing revenue-cycle health, not just listing a few add-backs. You may not need a formal report for every deal, but you do need clean support for add-backs and a clear explanation of denials, refunds, and payer shifts. A well-organized Rejigg data room can reduce back-and-forth.

Many healthcare contracts include notice or consent requirements when ownership changes, and the catch is that those clauses are often buried in the fine print. Payer participation agreements, facility contracts, billing vendor agreements, and software licenses can all slow or block closing if discovered late. Build a simple list of which contracts require notice or consent and the lead time for each. Rejigg’s data room helps you share contracts in a controlled way after NDAs are signed.

Working capital is the money the business needs to operate week to week, like payroll timing, supplies, and vendor bills, minus what you’re owed. In healthcare, accounts receivable can be large and slow, so buyers focus on A/R quality and how much will actually collect after denials and underpayments. Many deals set a “normal” working capital target and adjust price if you deliver more or less at close. Keep A/R and A/P reports current going into closing.

It depends on what must carry over for you to keep operating and billing, plus your tax and liability goals. Asset sales can limit some liabilities, but healthcare enrollments, payer contracts, and certain licenses may not transfer cleanly. Stock sales can preserve existing contracts and enrollments, but buyers will dig deeper into historical compliance. A healthcare attorney should guide structure. Rejigg helps you keep diligence and offers organized while your advisors handle the legal work.

HIPAA obligations continue through a sale, and buyers will expect a written plan for record custody, access controls, retention rules, and how patient requests will be handled after close. If the EHR is changing, they will also want a realistic migration plan and clarity on who has admin access during the cutover. Document your record retention policy and any past privacy incidents with remediation. Rejigg’s NDA and data room controls help limit access to sensitive details.

An earnout means part of the price is paid later if the business hits agreed targets. In healthcare, earnouts often tie to collections, provider retention, or visit volume because payer behavior and staffing changes can swing results quickly. They can work, but the definitions must be tight, including what counts as collections, how refunds are treated, and what happens if the buyer changes billing processes. Rejigg’s negotiation guide helps you pressure-test terms before signing.

Transition periods usually track what needs continuity: payer enrollment work, provider retention, referral relationships, and keeping billing steady through system changes. Many deals land in the 3–12-month range, but the right answer depends on how owner-dependent the practice is and what roles you actually fill today. Get the role in writing with weekly expectations and decision rights. Rejigg’s transition planning guide helps you define a realistic scope.

Confidentiality usually breaks when documents get forwarded by email, or when unvetted buyers start calling around to “verify” the story. Keep early disclosures tight, then release sensitive items only after an NDA and only to serious buyers. Rejigg pre-vets buyers and handles digital NDAs before buyers see identifying details. You control exactly who can access each folder in the data room, which helps prevent staff panic and referral-source rumors.

Common deal killers in clinics and ASCs are usually gating items that delay billing or create unpriced liability. Examples include payer enrollment or credentialing resets that stop claims, missing or shaky licensure, unresolved audits with unclear exposure, and fragile provider coverage where one departure collapses access. EHR separation can also stall a deal when the practice is embedded in a hospital system’s instance and no one scoped the unwind. Use the prepare-to-sell guide to map these risks early.

Buyers treat equipment as future replacement cost and downtime risk, not just an asset list. Expect questions on age, service records, uptime issues, and service contract terms, especially for imaging, surgical, and lab equipment that can affect throughput and accreditation expectations. If equipment is leased or owned by a related party, buyers will want the contract terms and whether the arrangement can transfer. Keep an updated equipment schedule in your Rejigg data room.

Taxes depend on deal structure, entity type, and how the purchase price gets allocated across goodwill, equipment, and other assets. In medical clinics, allocation can materially change your tax bill because equipment and certain contract-related value can be treated differently than goodwill. Multi-state operations also create state tax wrinkles. Have a tax advisor model scenarios before you sign an LOI. Rejigg helps by keeping offers and terms organized so you can compare after-tax outcomes.

Compare offers based on what you will actually collect and how likely the deal is to close. In healthcare, terms like credentialing and enrollment timelines, working capital targets, holdbacks tied to audits or refunds, and earnout definitions based on collections can matter as much as headline price. Also, look at the buyer’s provider retention plan and clinical governance approach. Rejigg’s deal tracking and offer comparison dashboard lines up terms side-by-side, including timeline, financing, and contingencies.

Start by documenting operational reality that buyers will ask about immediately: legal entities by site, payer and credentialing constraints, and revenue-cycle metrics that show what really collects. Then build a data room and decide what you’ll share upfront versus after an NDA. Rejigg is free for sellers and includes buyer vetting, digital NDAs, direct messaging, and a secure data room so you can run the process without a broker. You can also book time here: schedule a consultation call.