Example report
An example HPNA valuation report for a general practice
A full 23 page valuation report for a fictional general practice in Heidelberg, Victoria, laid out section by section the way an HPNA report is. The practice, its doctors and its figures are invented. The setting is real: the catchment's Medicare bulk billing and fee statistics, the Medicare settings at the valuation date, Victorian payroll tax, award wages, local rents and the legal checks on a change of ownership, each sourced in the report. Read it to see what you would receive before you engage us.
What the example shows
Every step from Medicare billings to the value of the shares
The catchment
Who lives around the practice and how that is changing, and how much local GP work is bulk billed and at what average fee, compared with other Melbourne areas, from Medicare and ABS statistics.
The Medicare settings
The MBS fees, bulk billing incentives and practice incentive payments in force at the valuation date, and what changed during the year.
Payroll tax
How Victorian payroll tax applies to the payments a practice makes to its contracted doctors, with and without the exemption the report relies on.
From reported profit to maintainable earnings
Every normalisation adjustment set out line by line, and why the run-rate after a mid-year change in billing is the earnings a buyer would rely on.
Method and cross-checks
Capitalisation of future maintainable earnings, the bridge from enterprise value to equity value, and the cross-checks applied to the conclusion.
A billing decision tested
What a move to full bulk billing does to the practice and to each doctor, and the service fee that would hold doctor incomes level.
What a buyer has to check
Health records, MyMedicare and incentive program registrations, the retail lease and restraints when a Victorian practice changes hands.
Where each APES 225 item sits
A table mapping each item paragraph 5.2 of APES 225 says a valuation report should communicate to the page where this report deals with it.
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What is real and what is invented
Ashcombe Family Medical Pty Ltd does not exist. Its doctors, patients, billings, costs, results and debts are invented, and every figure reconciles so that each step from GP billings to equity value can be followed.
The setting is real. Population, bulk billing and fee statistics for the Banyule area, Medicare fees and incentives, the Victorian payroll tax exemption, award wages, rents and the legal rules come from public sources listed in the report’s appendix.
None of the invented figures is a benchmark or an estimate of what any real practice is worth. A real valuation starts from your own financial statements and agreements, and the conclusion depends on them.
Example GP clinic valuation report
23 pages, 0.6 MB PDF
The example report is general information about how HPNA approaches a valuation. It is not a valuation of any real business and not financial product, tax or legal advice, and no person should act or rely on it.
Valuing a practice of your own? Start with how a medical practice valuation works, or see what one costs.
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Tell us about your healthcare business and the purpose of the valuation. We will confirm the appropriate scope, information requirements, timeframe and the fee band that applies.