Medical Practices for Sale in Indiana

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.

Indiana has 26 federally funded health center organizations (HRSA, 2025), and about 49% of people on Medicare in the state are in Medicare Advantage or other private plans (KFF, 2024). Growth in Medicare Advantage keeps value-based care groups interested in primary care practices with many senior patients.

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

Generally not directly. Indiana law lets hospitals, health care organizations, HMOs and nonprofits employ or contract with physicians as long as they do not control the physician's medical judgment, but a lay-owned business generally cannot own the medical practice itself. Professional corporations must be owned by licensed individuals, and LLCs may provide professional services to the extent the licensing board allows.

What changed recently: since July 1, 2024, health care entities with $10 million or more in total assets must notify the Attorney General at least 90 days before a merger or acquisition. A 2025 law (HB 1666) added ownership reporting and, since July 1, 2025, exempts practices mostly owned by Indiana-licensed practitioners who work in them. Indiana also banned non-competes for primary care physicians in 2023 and between physicians and hospitals in 2025. 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 Indiana, Medicaid runs mostly through managed care plans such as the Healthy Indiana Plan, so your mix of Medicaid, Medicare and commercial patients and the plans you contract with weigh heavily in the price. The state has 169 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.

Indiana has a flat 2.95% income tax for 2026, counties add their own 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.

It depends on your specialty and the buyer. Indiana bans non-competes for primary care physicians in agreements signed on or after July 1, 2023, and between physicians and hospitals or hospital systems from July 1, 2025. Other physician non-competes must include a buyout option and patient notice terms.

For a sale to a hospital or hospital system, the 2025 law still allows a sale-of-business non-compete when the physician owned more than 50% of the practice. Your attorney should review how the rules apply to your sale.

Indiana requires providers, including physicians, to keep original records at least 7 years.

If you retire, stop practicing or leave the community, you must notify active patients seen in the last 2 years in writing or by a newspaper notice once a week for 3 weeks, and arrange for their records to transfer. Indiana rules do not allow records to be sold to another practitioner as a separate item, but they can transfer to a successor physician who takes over the practice, with written notice to all patients. We make sure the records transfer is set up correctly in the purchase agreement.