Pros and Cons of Buying a Medical Practice
Pros of Buying Medical a Medical Practice:
Immediate Operational Readiness
1. Acquiring an existing medical practice allows you to start operations right away. There’s no need to deal with setup details, initial errors, or forming a skilled team – everything is prepared for you.
Pre-existing Patient Base
2. An existing patient base is an invaluable resource. You can avoid spending time and money on marketing or generating new businesses. The current patients are already familiar with the location and are unlikely to leave, ensuring income from the very beginning.
Improved Work-life Balance
3. With tasks such as setting up, acquiring patients, and hiring staff already taken care of, you can avoid the initial stress of launching a business and start working as usual. This helps save time and maintain a healthy work-life balance.
Equity Accumulation
4. Owning a medical practice is a significant advantage, as it builds equity. The property itself can be a valuable investment, apart from the established business inside.
Cons of Buying a Medical Practice:
Limited Personalization
1. Starting from scratch allows you to shape your medical practice according to your preferences. However, buying an existing practice means you can’t build everything from the ground up to suit your tastes.
Staff Compatibility Issues
2. The current staff may have a distinct culture, work ethic, or treatment approach that differs from your own values and style. When buying a practice, you’re more likely to adapt to the existing work culture rather than to create your own.
Concealed Liabilities
3. The acquired practice may have hidden liabilities and issues not disclosed during the purchase process. For instance, depending on the purchase structure, you might be responsible for paying long service leave accrued by long-term staff. It’s crucial to have a lawyer carefully review all contracts before buying.
Resale Difficulties
4. If the property you buy is a single-use facility, it may be challenging to sell later if you decide to do so. Local zoning regulations could also restrict your ability to rebuild, expand, or offer specific services at a particular location.
