Medical Practice Valuation
Medical Practice Business Valuation Calculator & Exit Planning Built for Physicians
We built one platform that tracks your medical practice business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Medical Practice Owners Have No Idea What Their Business is Actually Worth
Current Medical Practice Valuation Multiples (2026)
Medical Practice values are strong due to increased buyer demand from hospital systems and PE-backed physician groups. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Medical Practice Business Value
Revenue and earnings are the two most influential factors in your medical practice business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Provider Count
2+ Providers
Practices seeing 25+ patients per provider per day show efficiency. Volume drives revenue in fee-for-service—buyers calculate revenue potential based on realistic patient volume and payer mix.
Solo practice = high key-man risk
Payer Contracts
Strong Contracts
30%+ commercial insurance provides better reimbursement than Medicare-heavy practices. Payer mix directly impacts margins—practices with strong commercial relationships are worth more than those dependent on government payers.
Medicare-only = thin margins
EHR & Systems
Modern EHR
Mid-levels handling 40%+ of visits show leverage and scalability. NPs and PAs extending physician capacity demonstrate an efficient care model—buyers see this as built-in growth potential.
Paper charts = expensive conversion
Revenue Per Visit
$180+ Per Visit
Ancillary revenue from labs, imaging, and procedures improves margins significantly. In-house ancillaries capture revenue that would otherwise leak to outside facilities and improve per-patient economics.
Low RVUs = money on table
Ancillary Services
Lab/Imaging Added
Multiple payer contracts reduce dependence on any single insurer. Diverse payer relationships mean no single contract renegotiation can devastate the practice—buyers see this as risk mitigation.
Exam-only = limited upside
Staff Stability
Core Team 3Yr+
Certified EHR with clean documentation supports billing and reduces audit risk. Proper documentation in a modern EHR demonstrates compliance and makes due diligence smoother for buyers.
Staff turnover disrupts relationships
How to Value a Medical Practice
The United States has approximately 250,000 physician-owned medical practices generating hundreds of billions in annual revenue. Whether you're a solo practitioner or run a multi-provider group, understanding how to value a medical practice is critical for retirement planning, partner buy-ins, and strategic exits.
Seller's Discretionary Earnings (SDE) or EBITDA are the primary valuation methods depending on practice size. Solo and small practices typically use SDE, while multi-provider groups use EBITDA. Medical practices generally sell for 1.5x to 3.0x SDE for smaller practices, while multi-provider groups can achieve 4.0x to 8.0x EBITDA depending on size, specialty, and payer mix.
Revenue multiples for medical practices typically range from 0.40x to 0.80x annual collections for primary care and up to 1.0x+ for high-demand specialties. Practices with a strong commercial payer mix and low Medicare/Medicaid dependence consistently achieve higher multiples.
The critical valuation factor unique to medical practices is provider dependence and referral sustainability. A practice where the selling physician generates 90%+ of production faces significant transition risk — patients follow their doctor. Practices with multiple providers, employed nurse practitioners or physician assistants, and established referral networks retain value through ownership transitions. Payer contracts, EHR systems, and accreditations also transfer with the practice and add measurable value.
Hospital and private equity acquisition of physician practices has dramatically reshaped the market. Specialties like dermatology, gastroenterology, orthopedics, and ophthalmology have seen particularly aggressive PE roll-up activity, pushing valuations to historic highs. Even primary care practices are attracting interest from value-based care organizations. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do medical practice businesses sell for?
Most medical practice businesses sell for 1.5x – 2.2x SDE or 0.4x – 0.7x annual revenue. However, the range is wide. Companies with strong provider count can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does provider count affect my company's value?
Provider Count is one of the biggest value drivers for medical practice businesses. Hospital systems and pe-backed physician groups specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my medical practice business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your provider count, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys medical practice businesses?
Common buyers include hospital systems and PE-backed physician groups, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for medical practice businesses?
Most medical practice businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.4x – 0.7x) are sometimes used as quick reference.
What's the fastest way to increase my medical practice business value?
The fastest improvements typically come from: 1) Improving your provider count to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.