Buying or Selling a Medical Practice in East Texas

Practice sales are common in East Texas as physicians retire, groups merge and hospital systems acquire independent practices. Lindsey Birdsong has represented physicians and dentists on both sides of these transactions, including the sale of a large physician group to a national hospital system and practice acquisitions for local surgical and dental groups.

Who Can Own a Practice in Texas

Texas generally prohibits the corporate practice of medicine, which limits who can own a medical practice. Dental practices have similar ownership rules. The buyer’s structure needs to comply before the deal can close.

Valuation and Fair Market Value

When the buyer is a hospital or another referral source, the price should reflect fair market value and not the value of future referrals. An independent valuation helps support the deal under the Stark Law and Anti-Kickback Statute.

Asset Purchase Terms

Most practice sales are asset purchases covering equipment, supplies, the practice name, phone numbers and goodwill. The agreement should address accounts receivable, liabilities that stay with the seller, and representations about billing and compliance history.

Patient Records and Notification

Records must be transferred and maintained in compliance with HIPAA and Texas rules, and patients should be notified of the change.

Payor Contracts, Licenses and Staff

Plan ahead for Medicare and Medicaid enrollment changes, commercial payor credentialing, DEA registrations and employee transitions. Delays here can interrupt cash flow after closing.

The Seller’s Next Step

Many sellers stay on as employees. Review that employment agreement as carefully as the purchase agreement.

Frequently Asked Questions

How is a medical practice valued?

Common methods look at income, assets and market comparisons. When a referral source is buying, the price must reflect fair market value.

Can a non-physician buy a medical practice in Texas?

Texas law restricts ownership of medical practices by non-physicians, with limited exceptions. Deal structure should be reviewed early.

Talk With a Tyler Attorney

Planning a practice sale or acquisition? See our health care law services. Call Lindsey Birdsong, PC at (903) 595‑6297 or visit our contact page. Our office is at 2307 Dueling Oaks Drive, Suite 103, in Tyler.

This article is general information, not legal advice. Talk with an attorney about your specific situation.