Primary Care, Specialty Medicine & Urgent Care
| Low | 2.5× |
| Median | 3.5× |
| High | 5× |
| Low | 3.5× |
| Median | 5× |
| High | 7× |
A specialty medical practice (dermatology, ortho, pain management) with $500K SDE in a suburban market typically sells for $1.25M–$2.5M (median 3.5× SDE). Primary care practices with strong commercial payer mix trade at 3.0–4.0× SDE. DSO-backed buyers pay cash at 5–7× EBITDA in competitive markets.
The U.S. healthcare market is $4.5 trillion annually (CMS 2024). Physician practices remain fragmented despite the DSO consolidation wave — 60%+ of physicians still work in practices with <10 doctors. Aging demographics are expanding demand for primary care, cardiology, dermatology, and orthopedics. Medicare reimbursement rates are stable (set annually by CMS) which gives predictable revenue. Commercial payer mix is a major value driver — practices with 70%+ commercial insurance pay higher rates than Medicaid/Medicare-heavy practices.
Contact-based value drivers — buyer due diligence essential.
Medical practices are excellent SBA candidates (approval 75–82%). Lenders view healthcare revenue as extremely stable and financeable. Typical deal sizes: $400K–$3M. SmartBiz, Live Oak Bank, and healthcare-specialized lenders are highly active. Key metrics: E&M (Evaluation & Management) visit volume, payer mix (commercial vs Medicare vs Medicaid), and accounts receivable aging. Physician acquisition loans often structured with seller financing (10–20% carry) to bridge valuation gaps.
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Open Business Valuation Calculator →Dental practices have higher multiples (3.5–5.0× SDE) than general medical practices (3.0–4.0× SDE) primarily because dental is mostly cash-pay or well-insured with high reimbursement rates, while medical practices often have higher Medicare/Medicaid mix with lower rates. Dental also has a stronger hygiene-recall revenue engine (25–30% of revenue) that is highly predictable. Medical practices with strong commercial insurance mix can match or exceed dental multiples.
(1) Commercial payer mix: practices where 65%+ of revenue comes from commercial insurance (Blue Cross, Aetna, Cigna) have better reimbursement and command premium multiples. (2) Multiple physicians: a practice with 2+ physicians has management depth and is not owner-dependent. (3) Specialty mix: dermatology, gastroenterology, orthopedics, and pain management have higher per-visit revenue than primary care and command 4–6× SDE. (4) E&M visit volume: each additional daily visit = ~$150K annual revenue at median collections.
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