A common option for those looking to run a physical therapy private practice is to buy an existing clinic rather than build a new one from the ground up. It’s not just an investment in your career but also a commitment to serving your community. However, there are many things to consider when buying a physical therapy practice, from the financial side of things to maintaining a good relationship with existing patients and staff.
Financial Considerations
The first thing to consider when buying a physical therapy practice is the financial aspect. Understanding the costs involved is crucial. Start by evaluating the asking price of the practice. You should include the physical assets like equipment and office space and more intangible assets like patient records.
Next, consider the practice’s revenue streams. Look at its financial statements over the past few years. Are they consistent, or do they show signs of decline? Understanding the revenue streams will give you a better idea of the practice’s profitability.
Legal Considerations
Legal considerations are another important aspect when buying a physical therapy practice. Will you be applying for a loan to purchase the practice? Knowing how to close an SBA loan can make the purchase go a lot more smoothly. You may also need to go over existing contracts like leases, supplier agreements, and employee contracts.
Next, consider the licensing requirements. Ensure that the practice complies with all local, state, and federal regulations. This could include obtaining necessary licenses and permits. You also need to understand the practice’s compliance with health-care regulations. Violations could result in hefty fines and penalties.
Current Staff and Patients
Another thing to consider when buying a physical therapy practice is how you plan to handle the current staff. Are you keeping people who are already familiar with the patients or bringing in your own team? Many patients build a rapport with their therapists, and it can help to keep pre-existing staff members on hand who have a good idea of how things work.
Buying a physical therapy practice is a significant decision that requires careful consideration. With the right preparation and resources, you can successfully buy and run a thriving physical therapy practice.
