Healthcare Valuation Template

Start with the Practice Inputs sheet. Pull your trailing twelve-month net collections report from your billing system — not gross charges, but actual collected amounts after contractual adjustments and write-offs. You'll also need your income statement broken down by expense category, your payer mix report (percentage of revenue from each payer), and a list of major equipment with estimated ages. This data entry takes 45–60 minutes if your billing software generates standard reports. Payer mix is the one data point most practice owners underestimate in importance — it directly affects which multiple range you fall into and how buyers price your reimbursement risk.

Healthcare practice valuations use SDE multiples for smaller owner-operated practices and EBITDA multiples for larger groups, but the ranges vary significantly by specialty. A solo family medicine physician carrying a Medicare-heavy patient panel might value at 0.6–0.8x net collections. A four-physician gastroenterology practice with an ambulatory surgery center, strong commercial payer contracts, and a full procedure schedule can command 6–8x EBITDA. The most important variable isn't specialty alone — it's the combination of payer mix quality, recurring procedure revenue, and what happens to the practice if the selling physician leaves. Practices where the owner is one of several providers fare far better in any transaction than solo practices built entirely around the seller's relationships.

Key Performance Indicators