Medical Practices for Sale and Acquisition in Arizona

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.

Arizona has 23 federally funded health center organizations (HRSA, 2025), and about 50% 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.

You can see examples of practices we have sold in Arizona on our listings page. We can tell you which buyer types are most active for your specialty and location.

Sometimes. Arizona courts recognized a corporate practice of medicine rule long ago, but later decisions allow licensed outpatient treatment centers owned by non-physicians to employ physicians. Arizona's entity laws also let non-licensed people hold up to 49% of a professional corporation's voting shares unless the licensing board sets a different limit. Physicians commonly use a professional corporation or professional LLC.

What changed recently: we are not aware of any new Arizona law from 2023 to 2026 on practice ownership, private equity deals or physician non-competes. Because the ownership rules are unsettled, 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 Arizona, Medicaid (AHCCCS) runs mostly through 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 284 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.

Arizona has a flat 2.5% income tax and excludes 25% of net long-term capital gains on qualifying assets, so the state tax on a building sale is fairly low. We help you compare the options with your CPA before the practice goes to market.

Usually yes. Arizona has no non-compete statute, and courts read physician non-competes strictly because patients have a right to choose their doctor.

Courts are more willing to enforce one that is tied to the sale of a practice, since it protects the goodwill the buyer is paying for. Your attorney should keep the time and area reasonable.

Arizona requires adult records to be kept at least 6 years after the last service, and minors' records until 3 years after age 18 or 6 years after the last service, whichever is later.

Before you close or sell, you need a written plan for the records and must give each patient timely notice of where the records will be and how to get them. In a sale, the buyer usually becomes the custodian of the records, and we make sure this is written into the purchase agreement.