The services offered by dermatology clinics have grown in the last decades--and this complexity of service has changed value--and valuation practices.
Three of the key factors for placing value specifically on a dermatology practice in today’s market include:
- Volume and type of services. Each dermatology practice requires individual evaluation. Cosmetic services, for example, are generally a plus in good economic times, but can generate fixed overhead that drags down income when the economy is weak.
- Contracted insurance rates. Higher insurance rates generate higher income, of course, and all things being equal, higher value. Transferability of insurer contracts to another physician are a consideration.
- Presence of ancillary income. A dermatology clinic with a successful pathology lab, for example, tends to create enterprise-level goodwill value.
For a limited time, BVWire is offering readers a complimentary Practice Specialty Report on Dermatology, which includes additional insight on dermatology practice value drivers.Download the report here by clicking on the free resources tab.