MEDICAL PRACTICE VALUATION FEES
How much does a medical practice valuation cost in Australia?
HPNA values a medical practice for a fixed fee set by its annual revenue. A full valuation report costs $1,500 for revenue up to $1 million, $2,200 for revenue $1 million to $3 million, $4,950 for revenue $3 million to $10 million and $9,450 for revenue above $10 million, all plus GST. An indicative assessment is $950 plus GST, and an expert report for a dispute between owners starts at $4,495 plus GST. The fee is agreed in writing before work begins and does not change with the value we reach.
Fixed fee, published. Agreed in writing before work starts.
The schedule
Three tiers, each a fixed fee
Indicative assessment
$950
One fee whatever the size of the business, credited against a valuation report if you proceed within 3 months.
Valuation report
- Up to $1 million
- $1,500
- $1 million to $3 million
- $2,200
- $3 million to $10 million
- $4,950
- Above $10 million
- $9,450
Expert report
- Up to $10 million
- $4,495
- Above $10 million
- $16,950
Every fee above is fixed and quoted plus GST, and is agreed in writing before any work starts. Bands are set on annual revenue. A business sitting exactly on a boundary pays the lower fee. See the full fee schedule
Which revenue sets the band
The band is set on the annual revenue of the business as a whole, taken from its most recent financial statements. Medical practices often run through more than one entity: a practice company, a service entity that holds the lease and employs the staff, and a trust that receives distributions. The band is set on the business as a whole rather than on one entity within it. The first entity is included and each additional entity that has to be analysed is $795 plus GST. We confirm the band and the entities in scope before the engagement is signed.
Worked examples
How the fee is worked out
Each row applies the band rule and the additional entity fee to a hypothetical engagement. The rows illustrate the arithmetic, not what businesses in this sector typically earn. All fees plus GST.
| Engagement | Annual revenue | Tier | Working | Fee |
|---|---|---|---|---|
| A general practice in one company, valued for a doctor buying in | $2,400,000 | Valuation report | $2,200, one entity | $2,200 plus GST |
| A medical centre with a practice company and a service entity, valued for a sale | $4,800,000 | Valuation report | $4,950 plus $795 for one additional entity | $5,745 plus GST |
| A specialist practice with a practice company and a service trust, valued for a dispute between its owners | $1,600,000 | Expert report | $4,495 plus $795 for one additional entity | $5,290 plus GST |
Which tier
The purpose of the valuation picks the tier
Indicative assessment
For a practice owner planning succession, or doctors opening a conversation about a buy-in. It costs $950 plus GST whatever the size of the practice. It is a limited scope view for planning, not a report for a court, the Australian Taxation Office or a lender.
Valuation report
The full independent valuation for a sale or purchase, a doctor buying in or leaving on agreed terms, succession, a tax matter or a restructure. It costs $1,500 to $9,450 plus GST depending on revenue.
Expert report
For a dispute between the owners of a practice, where the other side will test the conclusion. It starts at $4,495 plus GST.
What you are paying for
What the fee covers in a medical practice valuation
The fee covers the whole engagement as scoped: the analysis, the valuation and the written report. For a general practice, a specialist practice or a medical centre, the analysis works through the matters that decide how much of the earnings would survive a change of owner.
- Contractor doctor arrangements and the service fees the practice retains
- The payroll tax history on payments to contractor doctors
- The billing mix between bulk billing and private billing, and incentive payments
- Accreditation, and whether it would carry across in a sale
- How much goodwill stays with the practice when a doctor leaves, given that provider numbers belong to individual doctors
- The lease, and referral concentration in a specialist practice
Fee or commission
Why a valuation costs a fee when a broker appraisal does not
A medical practice broker will usually appraise a practice without charging, because the broker is paid a commission when it sells. That is a reasonable way to test the market. It is not an independent opinion of value: the figure comes from someone who is paid more when it is higher and nothing if there is no sale. A valuation is paid for by a fixed fee so that the conclusion has no bearing on what the valuer earns, and it sets out the normalised earnings and the reasoning so a co-owner, an accountant or a family law adviser can test it. Business valuation versus business appraisal compares the two.
Go deeper
Read the full analysis
- Sector pageMedical practice valuationsHow businesses in this sector are valued: methods, earnings adjustments, risks, value drivers and the information required.Read
- AnswerHow much is my medical practice worth?What the answer depends on in this sector, what pushes it up and what pushes it down.Read
- FeesThe full fee scheduleEvery tier and band, the boundary rule, the additional entity fee and what the fee includes.Read
FAQs
Medical practice valuation fee questions
How much does a medical practice valuation cost?
HPNA values a medical practice for a fixed fee set by its annual revenue. A full valuation report costs $1,500 for revenue up to $1 million, $2,200 for revenue $1 million to $3 million, $4,950 for revenue $3 million to $10 million and $9,450 for revenue above $10 million, all plus GST. An indicative assessment is $950 plus GST, and an expert report for a dispute between owners starts at $4,495 plus GST. The fee is agreed in writing before work begins and does not change with the value we reach. Each additional entity that has to be analysed is $795 plus GST. The full schedule is on the pricing page.
Does the fee depend on the value HPNA reaches?
No. The fee is fixed for the revenue band and agreed in writing before the work starts, so it cannot move with the conclusion. HPNA also takes no commission from any party to a transaction. A valuer who is paid more for a higher figure is not independent, which is why the fee is set this way.
My practice has a service entity. Is that a second fee?
It is an additional entity fee, not a second valuation fee. The first entity is included. Where a service entity, a second company or a trust also has to be analysed, each one is $795 plus GST. The revenue band is set once, on the business as a whole. We confirm how many entities are in scope before the engagement is signed, so the total is known in advance.
Does the fee depend on how many doctors work at the practice?
No. The fee is set by annual revenue, not by the number of doctors, rooms or sites. A sole practitioner practice and a larger practice in the same revenue band pay the same fee. The work on contractor arrangements, payroll tax and practitioner dependence is part of the standard engagement for a medical practice and is not charged separately.
Make your next decision with a clear understanding of value.
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.