Appraising the Appraiser

Selecting the Right Expert

There are many different reasons to have a medical practice valued.        

Perhaps you are planning to retire, and you’re beginning to think about selling your practice.  You’re considering inviting a new physician to join you or are splitting from your partner.

Maybe you plan to merge with a group of physicians or you need to know the value of your practice for a divorce settlement.

A hospital or HMO that is considering purchasing a practice is requiring an appraisal of value.

The following checklist should help you evaluate and select a qualified appraiser:

• Does the Appraiser specialize in Health Care or Professional Practice Appraisals?

• Does the Appraiser have the background and training that support understanding physician practices and the valuation process?

• Has the Appraiser worked with practices of your size, specialty, and character?

• Is the Appraiser a member of the ASA, IBA or other related specialty societies? Does he/she have other appropriate credentials?

• Does the Appraiser understand reimbursement, health care trends, practice characteristics as well as the financial situation?

• Does the valuation process include more than one Approach?

• Can the Appraiser clearly explain the valuation approaches and associated methods of appraisal?

• Does the Appraiser explain the required standards and ethics he/she follows? Does the appraiser sound objective?

Ask for an engagement letter, references, and credentials.