Medical Practice Valuation Multiples (2026)
Medical practice value depends almost entirely on specialty and payer mix. Dermatology, orthopedics, and GI command premiums of 1.2× revenue with PE / MSO interest, while solo primary care often sells closer to 0.7× revenue.
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Pick your industry and enter revenue + EBITDA / SDE. We'll triangulate three valuation methods and show what buyers typically pay for businesses like yours.
Premium drivers
- ↑Specialty with strong reimbursement (derm, ortho, GI)
- ↑Multi-physician group with shared call
- ↑Ancillary revenue streams (lab, imaging)
- ↑Long-term lease in growing market
Discount drivers
- ↓Solo provider dependence
- ↓Primary care with low payer rates
- ↓Aging EHR or paper charts
- ↓Stark / Anti-Kickback exposure
Who buys medical practice?
Hospital system MSO, specialty PE platform, or physician partner buy-in
Typical timeline + revenue band
- Days to close: 120–270
- Revenue band these multiples apply to: $1.00M–$5.00M
- NAICS: 621111 (Healthcare)
5 levers that lift your Medical Practice multiple by 30-50%
- 1Lock in recurring revenueConvert the top of your medical practice revenue stack into multi-year contracts, retainers, or auto-renewing subscriptions. Buyers pay 25-40% more for revenue they don't have to re-win every quarter.
- 2De-risk customer concentrationAim for no single customer above 15% of revenue. If you have a > 25% client, get them on a multi-year master services agreement before going to market.
- 3Document the business out of the ownerHospital system MSO, specialty PE platform, or physician partner buy-in will discount aggressively for any function that lives in the owner's head — sales, key vendor relationships, pricing, hiring. Run the next 90 days like the owner is on a 6-week vacation.
- 4Clean up the financialsGet a Quality of Earnings-ready trailing 12 months: GAAP-aligned, owner add-backs documented, no commingled personal expenses. This alone moves the multiple 0.5-1.0× upward in this category.
- 5Match the deal to the right buyer poolPE-backed roll-ups, strategic acquirers, and ETA buyers compete on different terms. List with someone who has run a process for medical practice acquisitions — generic SMB brokers will leave 20%+ on the table.
FAQ — Medical Practice valuations
What's a typical medical practice valuation multiple?▾
Typical medical practice valuations land near 2.2× SDE, 4× EBITDA, or 0.9× revenue. Strong operators reach 2.8× SDE / 5.2× EBITDA / 1.2× revenue, while weaker operators stay closer to 1.8× SDE / 3.2× EBITDA / 0.7× revenue.
How long does it take to sell a medical practice?▾
Most medical practice deals close in 120–270 days from listing. Strong operators with clean financials and a documented buyer pool close on the lower end.
Who buys a medical practice business?▾
Hospital system MSO, specialty PE platform, or physician partner buy-in
What pushes a medical practice valuation to the high end?▾
Specialty with strong reimbursement (derm, ortho, GI). Multi-physician group with shared call. Ancillary revenue streams (lab, imaging). Long-term lease in growing market.
What forces a discount when selling a medical practice?▾
Solo provider dependence. Primary care with low payer rates. Aging EHR or paper charts. Stark / Anti-Kickback exposure.