Guide to Selling a Palliative Care Practice in New Orleans, LA

If you own a palliative care practice in New Orleans, you are delivering a service with incredible demand. The city’s demographic trends and healthcare landscape create a dynamic environment for practice owners considering their next move. Navigating a sale in this market requires a clear understanding of unique local factors, from state regulations to the strategies of major buyers. This guide provides the initial insights you need to start planning.

Market Overview

The need for palliative care in Louisiana is significant, and the market is structured to meet it, creating opportunities for established community practices.

High Demand in the Crescent City

Statewide, an estimated 86.6% of hospital inpatients already have access to palliative care, with availability concentrated in urban centers like New Orleans. This demonstrates a well-understood need within the major health systems. The demand is fueled by powerful demographic tailwinds. As the baby boomer generation ages, nearly 10,000 Americans become Medicare-eligible daily, a population where chronic illness is common and the benefits of palliative care are most pronounced.

The Role of Community Practices

While hospital-based programs are prevalent, a growing network of community-based practices provides essential, out-of-hospital care. Buyers, including large health systems and private equity groups, recognize that these community practices are often more agile and deeply connected to patients. This makes them valuable assets for expanding a palliative care footprint beyond hospital walls.

Key Considerations for a New Orleans Practice

Selling a palliative care practice in New Orleans involves more than finding a buyer. You must navigate a specific set of local workforce, regulatory, and reimbursement challenges. The state’s workforce has only 1.6 certified palliative care prescribers per 100,000 residents, a likely shortage that places a premium on practices with stable, certified teams. At the same time, the Palliative Care Interdisciplinary Advisory Council, formed to improve care, is set to terminate on August 1, 2025, creating uncertainty about future state-level advocacy. A successful sale depends on framing these factors not as risks, but as opportunities for a well-prepared buyer. An advisor can help you tell this story effectively.

Market Activity: Buyers Are Active in Louisiana

The market is not just theoretical. It is active. Both national healthcare companies and private equity-backed groups are acquiring practices in Louisiana to build their presence. The acquisition of Greater New Orleans-based AmeraCare by Traditions Health is a perfect example of a private equity-backed company entering the local market. For owners, this means there is real competition for well-run practices. Understanding the strategic goals of these different buyers is key to finding the right partner and maximizing your outcome. We don’t just “list” your practice; we run a competitive process to create leverage for you.

The Sale Process, Simplified

Many owners delay selling because they fear the process will be a distraction. But when managed correctly, it is a structured project that we lead on your behalf. That’s why we believe starting the conversation 2-3 years before your target exit date is a good idea. It gives you time to prepare on your terms, not a buyer’s. The process generally follows four key stages:

1. Preparation and Valuation. We work with you to analyze your financials, normalize your earnings, and build a compelling story around your practice’s strengths to establish its true market value.
2. Confidential Marketing. We identify and discreetly approach a curated list of strategic and financial buyers from our proprietary database, creating competitive tension while protecting your confidentiality.
3. Negotiation and Due Diligence. We manage offers and lead negotiations. Once a letter of intent is signed, we organize the due diligence process to be as efficient as possible, preventing it from overwhelming you.
4. Closing and Transition. We coordinate with attorneys to finalize legal documents and ensure a smooth transition for you, your staff, and your patients.

What Is Your Practice Really Worth?

Sellers often tell me they have a “back of the napkin” number in mind for their practice value, but this figure is usually based on revenue or a simple rule of thumb. Sophisticated buyers, however, value your practice based on its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). We calculate this by taking your reported profit and adding back owner-specific personal expenses or a non-market-rate salary. This adjusted cash flow is then multiplied by a specific number, or multiple. This multiple is influenced by factors like your payer mix, your reliance on a single provider, and your growth potential. Properly calculating and defending your Adjusted EBITDA is often the single most important factor in achieving a premium valuation.

Planning for Life After the Sale

A successful exit is not just about the final price. It’s also about what comes next for you, your team, and your legacy. Many owners fear losing control, but a modern deal structure can offer much more flexibility than a simple cash buyout.

Creating Your Second Act

Control is not an all-or-nothing concept. We can help you explore structures like a minority recapitalization, where you sell a portion of the practice but remain at the helm. Alternatively, an equity rollover, where you retain a stake in the new, larger company, gives you a potential “second bite of the apple” when that company is sold again in the future.

Protecting Your Legacy

The right deal structure also protects what you have built. We can help you negotiate terms that ensure continuity of care for your patients and job security for your key staff members. Your legacy deserves to be a central part of the conversation, and planning for it in advance gives you the power to shape the future of your practice long after you have transitioned.