Goodwill: Why it Shouldn’t be a Dirty Word in the Valuation of Physician Practices

Health Care

November 30, 2016
by Lisa Cribben, CPA/ABV, ASA, CMA

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Lisa Cribben Lisa Cribben, CPA/ABV, ASA, CMA

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The topic of goodwill in a physician practice acquisition continues to be hotly debated. There are very different viewpoints from reputable appraisers on how to value physician practices and whether hospitals can pay for goodwill in an acquisition. I often hear healthcare professionals involved in acquisitions say, “Hospitals can’t pay for goodwill.” However, there is no legal or financial reason why goodwill cannot be considered in a physician practice acquisition. This article discusses the merits of considering and including goodwill in the valuation of a physician practice.

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Length: 5 pages (PDF 98 kB)

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