Questions for Dr. Stern
About Your Urgent Care Center
86. I have an urgent care/primary care practice at the above address that last year had a total revenue of $2 million. Who would I speak with if I wanted to find out my practice's current worth? Thank you.
Urgent care centers are often valued, just like many other businesses, via a capitalization of historical earnings or cash flow method (often expressed as a “multiple of EBITDA”). Of course, one may need to make adjustments for inadequate or excess reserve accounts, intangibles, leases, extraordinary items and management compensation, etc. For a multiple center location, multiples up to 6x EBITDA can be seen. For a single urgent care center, multiples as low as 2-3x may be more likely.
Another method that could be used (but rarely is in real practice) may include discounted cash flow (based on value of cash flows that the urgent care can generate over its forecasted remaining useful life). I don’t believe there are any relevant publically-traded companies or publically available statistics on other urgent care sales to use for a comparison valuations (Guideline company multiples or Guideline company multiples).
One way to increase the value of an urgent care is to optimize billing and coding. Our company Practice Velocity has been able to help many centers double their profitability almost overnight by improving efficiencies in billing and coding.
We specialize in helping urgent care centers achieve peace-of-mind profitability through cutting-edge coding and billing software solutions. With over 500 urgent care centers in 44 states, Practice Velocity now serves more urgent care centers for charting and coding than all other systems combined.
Our experience tells us that, Practice Velocity will exceed your expectations with the:
- fastest charting,
- easiest implementation, and
- most return on investment (usually over $10 increased revenue per patient).
Satisfied urgent care colleagues are our number one source of new clients. We will work hard to transform you and your staff into another glowing reference for our products and support.
The owners of Practice Velocity also operate ten urgent care centers in Illinois and Oklahoma (www.physiciansimmediatecare.com). We would be delighted to host your team for a full-day tour of our urgent care centers and software company. Feel free to call and schedule a visit to our urgent care headquarters (only one hour from O’Hare Airport). Over 300 urgent care professionals took advantage of tours of our urgent care operations last year. During the tour, we outline our entire operation, including:
- Reception
- Marketing
- Site selection
- Added services
- Occupational medicine
- Patient flow
- Whatever else you wish to review
We would be delighted to serve you in your new endeavor. To schedule a demo or phone call or to schedule a tour of our headquarters, call 888-357-4209 and ask for Dana (ext. 2051).
