Find the Best Medical Practice to Buy or Sell in Michigan

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.

Michigan has 39 federally funded health center organizations (HRSA, 2025), and about 62% 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 Michigan 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. Michigan limits ownership of professional corporations and professional LLCs that provide medical services to Michigan-licensed professionals. Physicians, osteopaths, podiatrists and chiropractors may co-own these entities, and physician assistants may join. Outside investors usually work through a management company.

What changed recently: we are not aware of any new Michigan law from 2023 to 2026 on practice ownership, private equity deals or physician non-competes. 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 Michigan, Medicaid and the Healthy Michigan Plan run almost entirely 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 280 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.

Michigan has a flat 4.25% income tax, some cities 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.

Usually yes. Michigan enforces non-competes that are reasonable in length, area and type of work, and courts can narrow terms that go too far.

Buyers almost always ask for one as part of a practice sale, so your attorney should review the time and area before you sign.

Michigan requires records to be kept at least 7 years from the date of service, and 15 years for records of certain procedures.

If you sell or close a practice, retire or die, the records cannot be abandoned: the state must be told who has them and how patients can get them, and they go to a successor, a provider the patient chooses or a records custodian. In a sale, the buyer usually becomes the custodian of the records, and we make sure this is written into the purchase agreement.