Medical Practices for Sale and Acquisition in Pennsylvania

The most active buyers right now are hospitals and health systems, physician groups backed by private equity, Federally Qualified Health Centers (FQHCs) and individual physicians who want to own a practice.

Pennsylvania has 40 federally funded health center organizations (HRSA, 2025), and about 53% of people on Medicare in the state are in Medicare Advantage or other private plans (KFF, 2024). That makes groups focused on value-based care especially interested in primary care practices with many senior patients. Because Pennsylvania limits ownership of medical practices to licensed physicians, investor-backed buyers usually work through a management company that partners with a physician-owned practice.

We can tell you which buyer types are most active for your specialty and location.

Generally no. Pennsylvania recognizes a corporate practice of medicine doctrine, and only licensed physicians may own medical professional corporations, LLPs and restricted professional companies, although enforcement against physician practices appears to be uncommon. Hospitals, licensed facilities and HMOs may employ physicians, and investors usually work through a management company paired with a physician-owned practice.

What changed recently: since January 1, 2025, Pennsylvania limits non-competes for physicians and other practitioners (HB 1633). Bills to require Attorney General review of health care deals were still pending in 2026. Rules like these change often, so have a health care attorney review the deal structure.

Most practices are valued on their adjusted yearly profit, often called EBITDA or seller's discretionary earnings, times a multiple. The multiple goes up with steady revenue, a loyal patient base, providers and staff who will stay, clean financial records and a practice that does not depend only on you. It goes down with heavy reliance on one payer, falling patient numbers or a short lease.

In Pennsylvania, Medicaid (Medical Assistance) runs mostly through HealthChoices managed care plans, so your mix of Medicaid, Medicare and commercial patients and the plans you contract with weigh heavily in the price. The state has 142 primary care shortage areas, and practices that serve these communities often draw strong buyer interest because patients have few other options.

A confidential valuation is the best way to see where your practice stands.

All three can work, and the right choice depends on your goals and the buyer. Selling the building with the practice gives you one clean exit and more cash at closing, but some buyers cannot finance both. Leasing it to the buyer gives you steady income and often makes the practice easier to sell, as long as the rent and terms are at market rate and the lease is long enough for the buyer's lender. Keeping the building and leasing it to someone else is also an option if you want to hold it as an investment.

Pennsylvania has a flat 3.07% income tax, local income taxes may also apply, and capital gains are taxed as ordinary income. We help you compare the options with your CPA before the practice goes to market.

For agreements signed on or after January 1, 2025, non-competes for physicians are unenforceable if they last more than 1 year, or if the employer dismissed the physician.

Non-competes tied to the sale of a practice or an ownership interest are exempt when you are the seller, so a sale agreement can still include one. Your attorney should review the terms.

Pennsylvania requires records to be kept at least 7 years from the last medical service, and for minors until one year after they reach adulthood if that is longer.

When a practitioner leaves an employer, the employer must tell the practitioner's ongoing patients within 90 days and explain how to transfer records. In a sale, the buyer usually becomes the custodian of the records, and we make sure this is written into the purchase agreement.