Selling your neurology practice is a major life decision. In Oregon, the process has its own set of rules and opportunities that you need to understand. This guide offers insights into navigating Oregon’s unique market, from state regulations to practice valuation, to help you prepare for a successful transition and maximize your final value. The right preparation and timing can dramatically change your outcome.
Market Overview
The market for neurology practices in Oregon is shaped by a unique regulatory landscape. Unlike many other states, Oregon has firm rules about who can own a medical practice. This creates a distinct environment for sellers.
A Physician-Centric Market
Oregon’s Corporate Practice of Medicine (CPOM) laws require that physicians own at least 51% of a medical practice. This has been the case for decades. This rule limits the pool of buyers, as many corporate investors and private equity firms cannot simply purchase a practice outright. The market favors physician-to-physician sales or acquisitions by larger, Oregon-compliant physician groups.
The Impact of New Regulations
Recent legislation, Senate Bill 951, will introduce new limitations on corporate involvement in healthcare starting in June 2025. This change increases scrutiny on transactions and underscores the state s commitment to physician-led medicine. For you, this means buyers must be well-vetted for compliance, and your practice s alignment with these laws is a key selling point.
Key Considerations
Given Oregon’s specific rules, your approach to selling needs to be strategic. It is not just about finding a buyer. It is about finding the right one. Your practice’s history of compliance and physician leadership is not a hurdle; it is a strength. This is an asset that is attractive to other physicians who want to preserve their clinical independence.
You should think about your practice’s story. What makes it valuable beyond the numbers? Is it the strong referral network, the sub-specialty services, or the well-trained staff? Framing this narrative is a key part of the process. It helps prospective buyers see the full picture. Preparing your practice for sale is about making it an obvious choice for the next generation of physician-owners in Oregon.
Market Activity
Despite the regulatory environment, the market is not quiet. Demand for high-quality neurology practices remains strong. An aging population and new advancements in neurological care are driving patient needs. We are seeing specific types of buyers who are actively looking for opportunities in Oregon.
The most common buyers include:
1. Expanding Physician Groups: Local or regional neurology groups looking to grow their footprint and add providers. They understand the Oregon market and value a practice with a good reputation.
2. Health Systems: Hospitals and integrated health networks often look to acquire specialty practices to broaden their service lines and secure referral streams.
3. Physician-Backed Platforms: Some investment models are structured to be compliant with Oregon’s CPOM laws, with physicians maintaining majority control. These buyers often bring management resources and capital for growth.
Timing is important. Knowing which of these buyer types is most active can help you position your practice effectively.
The Sale Process
Selling your practice follows a structured path. Understanding these steps can make the entire journey feel more manageable. The process generally begins long before the “For Sale” sign goes up. It starts with preparation, where we help you organize your financials and operations to present the practice in the best possible light.
Next comes valuation and the creation of marketing materials that tell your practice’s story while protecting its identity. The confidential marketing phase is next, where we discreetly approach a curated list of qualified buyers. Once interest is established, we manage negotiations to secure the best terms. The final major stage is due diligence, where the buyer examines every aspect of your practice. Many deals encounter problems here if the initial preparation was not thorough. A smooth process depends on anticipating what buyers will look for.
Valuation
So, what is your practice worth? It is the most common question we hear. The answer is not based on a simple formula or a percentage of revenue. Sophisticated buyers value your practice based on its risk and future cash flow, which we measure using Adjusted EBITDA. Think of this as your practice’s true profitability after removing personal or one-time expenses.
From there, a multiple is applied to your Adjusted EBITDA to determine the Enterprise Value. That multiple is not fixed. It changes based on several factors.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Reliance | Dependent on the owner | Associate-driven model |
| Growth Profile | Stable, flat revenue | Clear path for growth |
| Scale of Operations | Under $500k EBITDA | Over $1M EBITDA |
| Payer Mix | High government payers | Strong commercial/cash-pay mix |
A practice with a $700,000 Adjusted EBITDA could be worth $3.5 million (a 5x multiple) or nearly $5 million (a 7x multiple). The difference depends entirely on these factors.
Post-Sale Considerations
The transaction is not over when the sale agreement is signed. Thinking about what comes next is a big part of a successful exit. Your decisions here will affect your financial future and the legacy you leave behind. The structure of the deal has major tax implications, and planning ahead can significantly increase what you take home.
You also need a plan for your staff and patients. A smooth transition protects them and the reputation you have spent years building. Sometimes, the relationship with the practice does not end at the closing table. You might stay on for a period of time, or you could retain a portion of ownership in the new, larger entity. This is known as rollover equity. Planning for these post-sale details ahead of time ensures you are not just selling a business, but you are also securing your future and protecting your legacy.
Frequently Asked Questions
What unique ownership rules affect selling a neurology practice in Oregon?
Oregon’s Corporate Practice of Medicine (CPOM) laws require that physicians own at least 51% of a medical practice. This limits potential buyers primarily to other physicians or physician groups compliant with these rules, excluding many corporate investors and private equity firms.
How does Senate Bill 951 impact the sale of neurology practices in Oregon?
Effective June 2025, Senate Bill 951 will impose new limitations on corporate involvement in healthcare, increasing scrutiny of transactions and emphasizing physician-led medicine. Sellers must ensure buyers comply with these laws, making alignment with CPOM regulations an important selling point.
What factors influence the valuation multiple of a neurology practice in Oregon?
Valuation multiples depend on factors such as provider reliance (owner-dependent vs. associate-driven), growth potential, scale of operations (EBITDA size), and payer mix (government vs. commercial/cash-pay). These factors affect whether the multiple ranges lower (e.g., 5x) or higher (e.g., 7x) applied to the practice’s Adjusted EBITDA.
Who are the typical buyers of neurology practices in Oregon?
Common buyers include expanding physician groups familiar with Oregon, health systems aiming to broaden service lines, and physician-backed platforms structured for Oregon CPOM compliance. Each buyer type has unique motivations for acquiring practices in this regulated market.
What post-sale considerations should sellers plan for when exiting a neurology practice in Oregon?
Post-sale planning involves addressing tax implications, staff and patient transition, and potential ongoing involvement such as staying on temporarily or retaining rollover equity. These steps help secure the seller’s financial future and protect the legacy built through the practice.