For decades, doctors selling their practice received a value falling within a fairly tight range, regardless of its profitability. Over the last five years, corporate DSOs have emerged as a powerful force, offering substantially higher prices for some practices. Below, practice valuation expert Roger K. Hill* explains how a new valuation methodology may unlock a higher value for your practice, even when not selling to corporate.

Hill has been involved in over 4,000 practice transitions during his career. Over the past five years, he’s tracked values received (as a percentage of collections) for doctors selling to traditional buyers (another doctor or “D2D” transactions) and to corporate (DSO) buyers. The startling results are shown below: