Medical Practice for Sale and Acquisition in Colorado

Colorado offers a wide range of medical practices for sale, including internal medicine, family medicine, primary care, pediatric, and concierge practices. Our team provides insight on location, patient base, revenue potential, and operational fit to help ensure the right practice for sale in Colorado.

Start with a clear picture of your goals and financing, evaluate opportunities against your criteria, complete thorough due diligence, and lean on experienced guidance through negotiation and close.

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.

Colorado has 19 federally funded health center organizations (HRSA, 2025), and about 52% 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 Colorado 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. Colorado law says corporations may not practice medicine, and a professional medical entity must be owned by licensed physicians, with physician assistants allowed as minority owners. Hospitals, FQHCs, rural health clinics and certain other facilities may employ physicians as long as they do not control clinical judgment. Physicians can use a professional corporation, a professional LLC or a registered LLP, and investors usually work through a management company.

What changed recently: since August 6, 2025, most physician non-competes are banned (SB 25-083), and companies filing federal merger notices must also send a copy to the Colorado Attorney General (SB 25-126). 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 Colorado, Health First Colorado, the state Medicaid program, runs mostly through regional organizations instead of 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 131 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.

Colorado has a flat 4.4% income tax, 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 August 6, 2025, Colorado voids non-competes that limit a physician's right to practice medicine.

The exception is the sale of a business: if you sell your practice, your ownership share or substantially all of its assets, a non-compete can still be part of the deal. A special limit applies to owners of less than 50% who received their share for services. Your attorney should review the terms.

Colorado law does not set a retention period for physician offices, though Colorado Medical Board guidance is commonly cited as 7 years after the last treatment for adults and 7 years after age 18 for minors.

Every physician must have a written plan for records in case of death, retirement or closing, and must tell patients in writing how they can get their records. In a sale, the buyer usually becomes the custodian of the records, and we make sure this is written into the purchase agreement.