Buying a medical practice: what young doctors need to know
Introduction
You are completing your medical training and considering setting up practice. Creating a medical practice from scratch requires time, significant investment and several years before reaching a stable patient base. Acquiring an existing practice offers a concrete alternative: an established patient base, infrastructure in place and immediate turnover.
But this solution also carries risks. The valuation of a medical practice in Switzerland varies greatly depending on the region, speciality and quality of the patient base. Valuation errors can be costly, and some practices hide structural or financial difficulties.
This guide supports you in your medical practice acquisition project. You will discover the essential criteria for evaluating an opportunity, the price ranges practised in Switzerland, the available financing options and the stages of the acquisition process. The objective: to enable you to make an informed and secure decision to start your activity in the best conditions.
📌 Summary (TL;DR)
Acquiring a medical practice offers a quick start with an existing patient base, but requires rigorous analysis. Key criteria include the quality of the patient base, location, financial results over 3 years and regulatory compliance. In Switzerland, prices vary between 100,000 and 800,000 CHF depending on speciality and region. Financing generally combines equity (20-30%), bank loan and vendor credit. Thorough due diligence and support from specialised experts reduce the risk of unpleasant surprises.
📚 Table of contents
Why acquire a medical practice rather than create one?
Acquiring an existing medical practice presents concrete advantages compared to starting from scratch. You inherit an established patient base that generates revenue from day one. Medical equipment is already in place, which avoids significant initial investments.
Practice authorisations and agreements with insurers are active. You avoid the administrative delays of a new installation. The commercial lease is negotiated, computer systems are operational.
Installation costs and time are considerably reduced. For a young doctor in Switzerland, it is often the fastest route to independence.
Essential criteria for evaluating a medical practice
The acquisition of a medical practice requires rigorous analysis. Four main criteria determine the viability of your project: the quality of the patient base, location and infrastructure, financial health, and regulatory situation.
Each element must be checked methodically. A weakness in one of these areas can compromise future profitability. Do not rush: a complete evaluation takes time but avoids costly mistakes.
The following sections detail each criterion with concrete checkpoints.
The patient base: quality before quantity
The number of patients is not enough. Analyse the structure of the patient base: loyalty rate, demographic profile, consultation frequency. A practice with 800 active patients is worth more than 1,500 occasional patients.
Check the renewal rate over the last three years. A gradual decline may signal a problem. Examine the age pyramid: an ageing patient base requires a rejuvenation strategy.
Ensure that patient records are computerised and compliant. Data quality facilitates the transition and continuity of care.
Location and infrastructure
Location determines accessibility for your patients. Evaluate proximity to public transport, parking availability, and practice visibility. A ground floor with disabled access is an asset.
Inspect the condition of the premises: surface area, layout, compliance with standards. Check the remaining lease duration and takeover conditions. A short lease can be problematic.
Medical equipment must be inventoried: age, condition, regulatory compliance. Estimate short-term upgrade or replacement costs. Obsolete equipment impacts your budget.
Financial figures to analyse
Examine turnover over the last 3 to 5 years. A stable or growing trend is reassuring. Analyse profitability: EBITDA must be positive and consistent with the sector.
Detail fixed costs (rent, salaries, insurance) and variable costs (consumables, maintenance). Check outstanding receivables and any debts. Unpaid bills can reduce the practice valuation.
Engage an accountant for an in-depth analysis. Consult our guide on valuation methods in Switzerland to understand the calculations.
Contractual and regulatory situation
Verify that all practice authorisations are in order and transferable. Agreements with insurers (TARMED, care networks) must be confirmed. Some affiliations require a new application.
Examine existing staff contracts: medical assistants, secretariat. Their working conditions and salaries must be clear. A stable team facilitates the transition.
Regulatory compliance varies by canton. Ensure that the practice complies with all current health and administrative standards. A specialised lawyer can secure this stage.
How much does a medical practice cost in Switzerland?
The price of a medical practice varies according to speciality, location and size of the patient base. In general medicine, expect between 200,000 and 500,000 CHF. Specialities (dermatology, paediatrics) can reach 800,000 CHF or more.
The valuation often relies on goodwill (value of the patient base) and a multiple of annual turnover. Multiples vary from 0.5 to 1.5 depending on profitability and stability.
Concrete example: a general medicine practice with 300,000 CHF turnover and good profitability can sell for between 250,000 and 350,000 CHF. Beware of excessive valuations not justified by the figures.
Use our free valuation tool to obtain an initial estimate.
Financing the acquisition: options and strategies
Financing a medical practice acquisition generally combines several sources. Swiss banks offer specific loans for liberal professions, often on advantageous terms. Plan for 20 to 30% equity.
Vendor credit is a frequent option: the seller accepts staggered payment over 2 to 5 years. This reduces the initial contribution and demonstrates their confidence in the practice's viability.
Banks require guarantees: pledge of goodwill, personal guarantee, sometimes mortgage. A solid business plan is essential to convince financiers. It must detail your projections over at least 3 years.
Consult our article on financing an acquisition for concrete examples.
The acquisition process step by step
A practice acquisition follows a structured process in several phases. First, searching and selecting opportunities (1-3 months). Then, preliminary audit or due diligence: verification of financial, legal and operational data (1-2 months).
Price and terms negotiation follows (1 month). Once agreement is reached, sign a conditional sale promise. In parallel, finalise your financing (1-2 months).
Final signing occurs after conditions are lifted. Plan for a transition period with the seller (2-6 weeks) to facilitate patient base transfer. The complete process generally takes 6 to 12 months.
Our guide on the 8 steps to a successful acquisition details each phase.
Checklist: mistakes to avoid
The most frequent pitfalls in a medical practice acquisition:
Overestimating patient loyalty: part of the patient base may not follow during the change
Neglecting equipment condition: costly replacements can occur quickly
Underestimating transition costs: marketing, communication, adjustments require a budget
Not verifying authorisations: some are not automatically transferable
Accepting too short a transition period: 2 weeks are not enough for a smooth transfer
Doing without experts: an accountant and lawyer secure the process
The Leez expert network can support you at each stage.
Acquiring a medical practice represents a concrete opportunity for young doctors who wish to set up quickly with an established patient base. The essential criteria remain the quality of the patient base, financial viability and the state of infrastructure. Rigorous analysis of figures, verification of contractual aspects and realistic price evaluation are indispensable.
Financing can combine equity, bank loan and solutions specific to the medical sector. Support from experts specialised in medical practice transfers facilitates each stage of the process.
Are you a doctor looking for a practice to acquire? Discover the medical practices available on Leez and access verified listings in complete confidentiality. Our platform allows you to explore opportunities and contact sellers directly. For personalised support, our network of partner experts can advise you on the legal, tax and financial aspects of your project.
