Guide to Selling a Hospice & Geriatric Practice in Louisiana

The market for hospice and geriatric care in Louisiana is incredibly active. National market growth projections are strong, and private equity buyers are targeting practices just like yours. For practice owners, this presents a significant opportunity. Navigating the sale requires more than just finding a willing buyer. It requires strategic preparation to protect your legacy and maximize your financial outcome. This guide provides a clear overview of what you need to know.

Market Overview

The demand for hospice and geriatric services is not just a national trend. It is a powerful force right here in Louisiana. The combination of an aging population and increasing acceptance of hospice care has created a fertile ground for practice growth and acquisition.

High Patient Demand in Louisiana

Data shows that 53.6% of Medicare decedents in the state utilize hospice services. This is a very strong utilization rate. It indicates a consistent and reliable patient base for established practices. Buyers see this as a sign of a stable, resilient market with built-in demand.

Profitability and Investor Interest

Nationally, the hospice sector has seen a major shift. By 2020, 73% of all hospices were for-profit entities. This signals high profitability and is a key reason why sophisticated investors, including private equity, are so interested in the space. They are looking for well-run practices that can serve as a platform for future growth.

Key Considerations for Louisiana Sellers

In this strong market, a successful sale depends on the details. For hospice owners in Louisiana, there are specific factors that buyers will scrutinize heavily. Your state license from the Louisiana Department of Health (LDH) and your compliance with both federal and state regulations are foundational. Any ambiguity here can stop a deal cold. Beyond compliance, buyers want to see a stable, experienced team. Given the well-known challenges in clinical staffing, a practice with high employee retention and qualified personnel is far more valuable. Finally, your referral networks are a key asset. We help owners articulate the strength of these relationships to demonstrate sustainable, future revenue to a buyer.

Market Activity and Buyer Trends

The Louisiana market is not just theoretical. It is active. We are seeing a consistent flow of transactions as regional and national groups look to expand their footprint here. As one example, Traditions Health recently entered the state by acquiring two local hospice agencies. This is a common strategy.

Understanding who is buying is critical. The landscape is dominated by two main buyer types, each with different goals.

Knowing how to position your practice for each buyer type is a key part of our process. It ensures you attract the right interest and create a competitive environment to drive value.

Private equity’s influence in healthcare continues to grow.

The Four Stages of a Practice Sale

Many owners think selling a practice is a single event, but we see it as a four-stage process. The best outcomes happen when you prepare long before you are ready to sell. First is the Preparation Phase, where we work with you to analyze financials, clean up operations, and build a compelling growth story. This stage alone can dramatically increase your final value. Second is the Marketing Phase, where we confidentially present your practice to a curated list of qualified buyers. This creates the competitive tension needed to get the best offers. Third is Due Diligence, where the chosen buyer verifies everything. This is where most unguided deals fall apart. Finally, there is the Closing Phase, where we help you navigate the final legal and financial negotiations to ensure the deal on paper is the cash you receive.

How Your Practice is Valued

One of the first questions every owner asks is, “What is my practice worth?” The answer is more complex than a simple multiple of your revenue or profit. Sophisticated buyers value your practice based on its future cash flow and risk profile.

The Key Metric: Adjusted EBITDA

Buyers look at your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This is not the profit on your tax return. We calculate it by taking your stated profit and adding back non-recurring or owner-specific costs. These could include things like your personal auto lease, above-market salary, or a one-time renovation expense. This process reveals the true cash-generating power of your practice, which is often much higher than you think.

The Valuation Multiple

Your Adjusted EBITDA is then multiplied by a number. This multiple depends on several factors. A practice with multiple providers, a strong management team, and diverse referral sources will get a higher multiple than a solo practice. For a healthy hospice in today’s market, these multiples can be quite strong, often ranging from 5.5x to 7.5x for practices with over $1M in EBITDA. A professional valuation tells your story with the right numbers to justify the highest possible multiple.

Planning for Life After the Sale

Selling your practice is a major life event. The work is not over once the sale agreement is signed. A successful transition plan considers what happens on day one after closing and beyond. Your legacy and the future of your dedicated staff are important. The right deal structure can include provisions to protect your team and ensure continuity of care, which is often a key concern for founders. You also need to consider your own role. Do you want to retire completely, or would you prefer to stay on in a clinical role for a few years? This is a critical point to negotiate. Finally, the structure of your deal has huge tax implications. We work with you and your tax advisors to plan for things like earnouts or equity rollovers, ensuring you keep as much of your hard-earned proceeds as possible.