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Health & Medical Finance: Establishing or Acquiring a Healthcare Practice

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If you are a healthcare professional in your first, second or even twentieth year of work, you may be looking at one day acquiring or establishing your own practice.

Before you can get your practice off the ground you need to have the right business strategy in place along with adequate working capital. Finding health and medical finance solutions that are tailored to your needs can be onerous and let’s face it – as a healthcare professional you more than likely don’t have the time.

At Ledge Health we partner with healthcare professionals and reach out to a large variety of financial institutions (banks/lenders) to source various finance solutions to suit your requirements.

In this article, we will explore the advantages and disadvantages of either (1) acquiring an existing practice or (2) establishing a new practice.

1. Acquire an existing practice

When buying an existing practice, you will typically pay for the goodwill of the practice and the plant and equipment, in addition to leases and staff.


  • Buying an existing practice and goodwill gives you immediate income along with the intangible benefits that come with an existing brand, established processes and position in the market.
  • May permit a warm hand over of the practice, where the current owner continues to work in the practice for a period as an employee to ensure there is no abrupt transition to unsettle patients.
  • Buying the plant and equipment of an existing practice is often cheaper than buying it brand new.


  • Deciding on a fair price for the goodwill of the practice can be difficult as it is dependent on the accuracy of financial/management records, run off or leakage of patients and changing competition in the area.
  • Even though the plant and equipment of an existing practice may be cheaper, you run the risk of it being dated or not suited to your requirements.

2. Establish a new practice

Establishing a practice from scratch allows you to essentially make it your own by having the management, staff and decor of your choice. This will require putting the right infrastructure in place, from the fit out of the consultation rooms, to the IT systems and programs you use.


  • Starting a new practice means that you don’t run the risk of paying for patients who might follow the outgoing practitioner or use another practice.
  • Purchasing new equipment and fit out means your practice can have modern rooms and state of the art equipment.


  • With no existing patients, a start-up practice has to market itself and secure patients to generate revenue.

– This can be difficult in the face of competition; and

– Require expenditure with marketing firms, or require the healthcare practitioner/s to operate not only as clinicians but also as business development and marketing managers.

  • Purchasing new healthcare equipment will often require a large initial outlay or finance to fund its acquisition.

There is no one size fits all solution to acquiring or establishing a healthcare practice, as these transactions are all unique a require a combination of equipment finance, goodwill & unsecured lending. When you partner with Ledge Health we source finance solutions from a variety of financial institutions, from the big four banks to specialist medical lenders.

Ledge Health can match the finance to the transaction, package, arrange and manage the process, and provide you with ongoing support.

If this article has sparked any questions contact our offices here.

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