The market for Telehealth and Digital Therapy in Oregon is experiencing strong growth, creating a significant opportunity for practice owners. However, capitalizing on this moment requires more than just a willing buyer. Maximizing your practice’s value depends on strategic preparation and navigating unique state regulations. This guide provides a clear overview of the key factors you need to consider for a successful sale.
Market Overview
Your practice operates in one of the fastest-growing sectors of healthcare. The global telehealth market is projected to expand at an incredible 24% compound annual growth rate through 2030. This wave of investment and patient adoption is creating unprecedented demand for established digital health practices. For owners, this translates into a powerful sellers market.
Oregon’s Unique Advantages
This national trend is even stronger in Oregon. The state has a high telehealth adoption rate, with over 91% of hospitals utilizing it. Favorable policies, like the Oregon Health Plan’s coverage for telehealth services, have solidified digital care as a permanent fixture in the healthcare landscape. This widespread acceptance and supportive reimbursement environment make Oregon-based telehealth practices particularly attractive to buyers looking for stable, scalable operations. But a great market is only the first piece of the puzzle.
Key Considerations
While the market is strong, a successful sale depends on navigating a few critical areas specific to Oregon. Answering these questions demonstrates your practices stability and readiness to a potential buyer.
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Navigating State Licensure. Your practice must show strict adherence to Oregon’s licensing rules, ensuring all providers are compliant for every patient location. This is a foundational due diligence item for any serious acquirer.
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Understanding Corporate Practice Laws. A new law, Oregon Senate Bill 951, places new limits on corporate involvement in medical practices. This directly impacts who can buy your practice and how the deal must be structured, especially for private equity buyers. Understanding these rules before you go to market is not optional.
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Preparing for Federal Policy Shifts. Key federal telehealth flexibilities are set to expire in late 2025. Buyers will want to know your plan for adapting to potential changes in cross-state licensing and prescribing rules. Having a forward-looking strategy demonstrates resilience.
Market Activity
The demand for quality telehealth practices has fueled a highly active M&A market. Understanding these trends is key to positioning your practice effectively.
Who Is Buying?
We are seeing a clear trend of consolidation. Independent practices are prime targets for several buyer types. Hospitals and large health systems want to expand their digital front door. National telehealth companies look to acquire regional market share. And private equity investors see digital health as a high-growth platform, seeking well-run practices to build upon. Each buyer has different motivations, which affects deal structure and your role after the sale.
What Are They Paying?
Valuations in the current market are compelling. While primary care practices may trade for 4-7x their adjusted earnings (EBITDA), specialty practices like digital therapy and behavioral health can command significantly higher multiples, often in the 6x to 12x EBITDA range. The final number depends on your practice’s size, profitability, and growth trajectory. A competitive sale process is the best way to determine your true market value.
Sale Process
Selling a practice is a structured process, not a single event. Knowing the path ahead helps you prepare for a smoother transaction and a better outcome. Here is a simplified look at the journey.
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Preparation and Valuation. This is the most important phase. It involves getting your financial and operational documents in order and establishing a clear, defensible valuation. This is the foundation for the entire sale.
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Confidential Marketing. Your practice is presented to a curated list of qualified buyers without revealing its identity. This process protects your staff and patients while creating competitive tension among potential partners.
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Navigating Due Diligence. Once a buyer is selected, they will conduct a deep review of your practice’s finances, operations, and legal compliance. Many deals face challenges here. Thorough preparation is the best way to prevent surprises.
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Closing the Deal. This final stage involves negotiating the definitive legal agreements and finalizing the transition plan. The goal is to ensure a smooth handover for you, your team, and your patients.
Valuation
What is your practice really worth? Buyers look past your tax returns to determine a figure called “Adjusted EBITDA” (Earnings Before Interest, Taxes, Depreciation, and Amortization). This number represents your practice’s true cash flow, adding back owner-specific perks or one-time expenses. That Adjusted EBITDA figure is then multiplied by a number (the “multiple”) to arrive at your practice’s value.
This multiple is not a fixed number. It changes based on risk and opportunity. We find that sophisticated buyers assess several key areas to determine the multiple they are willing to pay.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | Owner is the sole provider | Associate-driven, multi-provider team |
| Growth | Static patient base | Demonstrable patient & revenue growth |
| Technology | Basic, off-the-shelf software | Scalable, proprietary, or well-integrated platform |
| Contracts | Limited contracts with payers | Strong, diverse private payer contracts |
A professional valuation tells the story behind your numbers and justifies the highest possible multiple.
Post-Sale Considerations
The transaction itself is just one part of the journey. A successful transition is defined by what happens after the papers are signed. Planning for this stage from the beginning is critical for protecting your legacy and financial future.
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Defining Your Future Role. Do you want to continue practicing clinically for a few years, transition to a leadership role, or exit completely? Your goals will determine the right type of buyer and how the transition is structured.
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Protecting Your Team. Your dedicated staff is one of your practices most valuable assets. A key part of negotiations is ensuring a smooth transition for them, aligning them with a new owner who shares a similar culture and vision.
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Structuring Your Payout. Not all of your proceeds may come in a single lump sum. Many modern deals include an equity rollover, where you retain a stake in the new, larger company. This gives you a “second bite at the apple” and can lead to a much larger financial outcome in the long run. An advisor can help you weigh the risks and rewards of these structures.
Frequently Asked Questions
What makes Oregon a strong market for selling a Telehealth & Digital Therapy practice?
Oregon boasts a high telehealth adoption rate with over 91% of hospitals utilizing telehealth services. The state’s supportive policies, like those in the Oregon Health Plan covering telehealth services, make it an attractive market for buyers seeking stable and scalable operations.
What regulatory factors should I be aware of when selling my practice in Oregon?
Key regulatory considerations include strict adherence to Oregon’s state licensure rules ensuring providers are compliant for every patient location, understanding the implications of Oregon Senate Bill 951 which limits corporate involvement in medical practices, and preparing for potential federal policy changes affecting telehealth post-2025.
How is the valuation of a Telehealth or Digital Therapy practice typically determined in Oregon?
Valuation is commonly based on an Adjusted EBITDA multiple, reflecting your practice’s true cash flow. Specialty practices like digital therapy often command multiples from 6x to 12x EBITDA, influenced by factors such as provider model, patient growth, technology platform, and payer contracts.
What types of buyers are currently active in acquiring Telehealth practices in Oregon?
Buyers include hospitals and large health systems expanding digital services, national telehealth companies aiming for regional market share, and private equity investors seeking high-growth digital health platforms. Each buyer type has different deal motivations affecting ownership roles and deal structure.
What should I expect during the sale process of my Telehealth practice?
The sale process is structured into phases: 1) Preparation and valuation of financials and operations, 2) Confidential marketing to qualified buyers, 3) Due diligence review by buyers examining compliance and finances, and 4) Closing the deal with legal agreements and transition plans to ensure a smooth handover.