Know what your healthcare business is really worth.

A healthcare business valuation is an independent opinion of what a practice, pharmacy or provider is worth at a stated valuation date and for a stated purpose. It is usually prepared on a market value basis: the price a willing but not anxious buyer and seller would agree, both informed and neither forced to act. That meaning comes from Spencer v Commonwealth [1907] HCA 82 and is the one the Australian Taxation Office applies for tax purposes. Value in that sense is not a forecast of the price one particular buyer would pay. An independent business valuation records the earnings, method, evidence and assumptions, so the conclusion can be tested.

On maintainable earnings: the profit the practice can be expected to sustain once one-off items are removed and every doctor, including the owner, is paid market rates for clinical work. Those earnings are capitalised at a multiple reflecting risk, growth and how much earning capacity would survive a change of owner. Medicare provider numbers are issued to individuals, and Services Australia states you cannot use another health professional's provider number, so billings follow the doctor. A medical practice valuation also weighs billing mix, patient retention, the lease, whether a service entity is involved, and payroll tax exposure of the kind described in Revenue NSW ruling PTA 041.

On maintainable earnings from PBS dispensing, retail sales and funded professional services, capitalised at a multiple reflecting risks attached to the approval, location, margins and workforce. Under section 90 of the National Health Act 1953 a registered pharmacist must apply to the Department of Health, Disability and Ageing for approval to establish a new pharmacy or to change the ownership of an approved one, PBS medicines may only be supplied at or from the approved premises, and the Australian Community Pharmacy Authority assesses applications against the Pharmacy Location Rules. Goodwill in a pharmacy valuation therefore attaches largely to the approved premises rather than to the individual pharmacist.

On the earnings the provider can sustain under the pricing settings at the valuation date, adjusted for participant concentration, workforce cost and compliance risk. The NDIA publishes an NDIS pricing schedule, effective 1 July 2026, setting what it considers appropriate and reasonable maximum prices for NDIS supports, so growth comes from volume rather than price. An NDIS business valuation also tests registration. The NDIS Quality and Safeguards Commission states that registration is linked to a single ABN and cannot be transferred, and that for ownership changes from 1 July 2026 a buyer of a provider delivering high-risk or complex supports must start an audit no later than three months afterwards.

Capitalisation of future maintainable earnings is the usual primary method for an established practice: normalised earnings multiplied by a multiple reflecting risk and growth prospects. Where the future will differ from the past in a way that can be supported, a discounted cash flow values expected future cash flows in today's dollars. A net asset basis applies where earnings do not support goodwill. Both earnings methods produce an enterprise value, from which borrowings are deducted to reach equity value. Market evidence and any genuine offer act as cross-checks, and the Australian Taxation Office recommends a secondary or cross-check methodology where possible. Healthcare business valuation methods explains the choice.

That depends on the engagement, and we confirm the timeframe when the scope is agreed rather than quoting a standard turnaround. The main variables are the purpose, because a valuation prepared for a legal or tax matter carries a higher evidentiary standard than an internal review; the number of entities, sites and practitioner arrangements involved; whether the financial records are complete and reconciled; and how quickly questions on normalisation items are answered. Incomplete information is the most common cause of delay. The fee does not vary with any of that: it is a fixed amount set by annual revenue, agreed before work starts. How it works sets out each step.

Financial statements and tax returns for the most recent trading periods, management accounts for the current period, and the detail behind owner remuneration, related-party rent and one-off items, so that earnings can be normalised. Then the operational material: practitioner and contractor agreements, the lease, staff and award arrangements, billing or funding data by payer, patient or participant numbers, the asset register, and any registration, approval or licence documents. For a shareholding, add the constitution and any shareholders, partnership or unitholders agreement. The full list is in what information is needed for a business valuation.

Yes. We value the business as a whole first, then move from enterprise value, the value of the operations before borrowings, to equity value by deducting interest-bearing debt and adding any surplus or non-operating assets, and apportion that to the interest being valued. Whether a minority discount or a control premium applies depends on the purpose, the size of the parcel and what the shareholders, partnership or unitholders agreement says. That agreement may also fix the basis of value, for example fair value rather than market value. Share and equity valuations covers company, trust and partnership interests.

Yes, where it is prepared for that purpose and says so. The Australian Taxation Office states that the acceptability of a valuation usually depends on the valuation process undertaken rather than on who conducted it, and that the onus of providing a replicable and defensible valuation stays with the taxpayer even when a professional is engaged. It expects a report to record the purpose, scope, valuation date, definition of value, methodology and the evidence relied on. Whether a valuation is needed in your circumstances should be confirmed with your accountant. See tax and restructure valuations.

Yes. In family law property matters a business is commonly valued by a single expert: the Federal Circuit and Family Court of Australia describes a single expert as a private professional preparing a report for the Court on behalf of both parties, and lists property valuers and financial consultants among the expert types used. Part 7.1 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 covers appointment by the parties jointly or by court order, the duty owed to the court, the contents of the report and how a single expert may be questioned. See family law valuations.

An appraisal estimates what a business might sell for now. A valuation is a documented opinion of what an interest in the business is worth at a stated date, on a stated basis and for a stated purpose, prepared by someone with no interest in the outcome. An appraisal is normally prepared by the agent or broker who would act on the sale. HPNA takes no commission and charges a fixed fee set by annual revenue, agreed before the work begins. The Australian Taxation Office expects a valuer to remain objective and the value supported by credible evidence using a recognised valuation methodology. Business valuation versus business appraisal compares them.

Yes. HPNA values healthcare businesses in every state and territory. Most engagements are conducted remotely: financial and operational information is provided securely, and discussions with the owner, practice manager or adviser are held by video or telephone. A site visit can be arranged where the premises, fitout, equipment or layout matter to the conclusion. State rules change the analysis, including the payroll tax treatment of practitioner contracts, so the valuation reflects the rules that apply where the business operates. About HPNA sets out how we work with owners and their advisers.