Ep. 55: Selling your practice with Ericka Adler of Roetzel & Andress

Ericka Adler, JD, of Roetzel & Andress, joins the show to discuss factors you should consider before selling your practice.

Check out our previous episodes on Medicare cuts, practice employee safety, private equity and hospital consolidation, and ransomware gangs.

For more, be sure to check out Medical Economics Pulse, a quick-hitting news podcast that keeps busy physicians in the know.

Music Credits:
CHILL RELAXED JAZZ (DR SMOOTH) by Tasty Tunes - stock.adobe.com
Relaxing Lounge by Classy Call me Man - stock.adobe.com
COCKTAIL by Mythical Audio - stock.adobe.com

Editor's note: Episode timestamps and transcript produced using AI tools.

Introduction to the episode (00:00:00)

Overview of the podcast and introduction of the speakers discussing selling a medical practice.

Importance of compliance review (00:01:05)

Discussion on the compliance review process and its significance in the sale of a medical practice.

Staff's role in compliance (00:02:27)

Exploration of how staff compliance affects the sale process and potential buyer decisions.

Billing issues in due diligence (00:03:38)

Insight into common billing issues that arise during due diligence and their implications.

Compensation arrangements and compliance (00:05:14)

Examination of how improper compensation can lead to compliance issues in medical practices.

Maintaining HIPAA compliance (00:08:20)

Strategies for ensuring HIPAA compliance during the due diligence process when selling a practice.

Impact of state laws on sales (00:10:13)

Discussion on how different state laws can complicate the sale of multi-state practices.

Common misconceptions in selling (00:13:04)

Addressing misconceptions physicians have about the sales process and buyer expectations.

Reasons sales fall through (00:14:46)

Examples of mistakes by practice owners that can lead to failed sales transactions.

Buyers' considerations beyond profitability (00:16:39)

Understanding that buyers evaluate more than just financials; they assess overall compliance and operations.

Due diligence variations by buyer type (00:17:50)

Comparison of due diligence levels between physician groups, private equity, and health systems.

Addressing unqualified staff (00:19:13)

Advice on whether to remove unqualified family members from payroll before selling.

Planning ahead for sale (00:20:38)

Emphasis on the importance of early planning and thorough preparation before selling a practice.

Conclusion and final thoughts (00:22:29)

Wrap-up of the conversation, highlighting key takeaways for physicians selling their practices.