When it comes to preparing a healthcare practice for sale, many owners tend to focus on traditional business metrics—revenue trends, operational efficiency, and patient loyalty. But in today’s market, one critical driver of valuation is often overlooked: the strength of the technology infrastructure.
Healthcare buyers are increasingly concerned with not just the usual factors like financials, but how ready a practice is to handle and mitigate digital risks, integrate with new systems and scale operations efficiently. Outdated platforms, weak data management, or cybersecurity vulnerabilities can raise red flags, reduce purchase price offers, and drastically extend due diligence timelines. In contrast, practices that demonstrate strong technology readiness are more attractive and can command premium valuations.
Why Technology Readiness is Important to Buyers
Today’s buyers know that when they acquire a healthcare practice, they’re not just inheriting patients and staff, but also digital assets—and digital liabilities. A practice that hasn’t prioritized modernization or cybersecurity can present a costly risk post-acquisition.
Compliance & Cybersecurity risks: The healthcare industry as a whole is uniquely vulnerable to cyberattacks. Medical records are highly sensitive and can be exploited in numerous ways. Even a seemingly minor past data breach can spark concern for buyers, especially given HIPAA regulations and the reputational damage that can follow an incident.
Outdated systems: Older electronic health records (EHRs), billing systems or communication platforms often require immediate upgrades, adding to the buyer’s cost burden.
Integration challenges: Practices using fragmented systems that are not interoperable are harder to fold into larger organizations, reducing operational efficiency and delaying integration timelines.
Key Areas to Assess and Improve Before A Sale
If you are considering selling your practice in the next 1-3 years, focusing on your digital health now can strengthen your negotiating position later, not to mention reduce your overall technology risks in general.
Here are some important areas to address:
Cybersecurity Risk Assessment
Before putting your practice on the market, engage a third-party cybersecurity advisor to perform a thorough risk assessment. With this assessment you can address vulnerabilities, update security protocols and document the steps taken to improve protections. Buyers will want evidence that cybersecurity is actively prioritized and not an afterthought.
HIPAA Compliance Review
A HIPAA review can reveal gaps that should be corrected before a sale. Ensure that privacy policies, employee training, breach notification procedures, and Business Associate Agreements (BAAs) are current and documented. HIPAA non-compliance can be a major dealbreaker.
Technology Infrastructure Modernization
As buyers prefer cloud-based, secure, interoperable systems, make sure you evaluate your EHR, practice management systems, billing software, and patient communication platforms. If you’re working with an outdated system, you may want to make critical upgrades to increase your practice’s value.
Data Organization and Integrity
When your data is clean, accurate, and accessible, it makes your practice more appealing to buyers. Conduct internal assessments to confirm that patient records, billing data, and operational reports are organized, up to date, and properly backed up.
Incident Response Plan
Even the best systems can be vulnerable. Having a documented and tested incident response plan shows that you are prepared to handle cybersecurity incidents quickly and professionally—providing reassurance for buyers evaluating risk.
Staff Training and Culture
Human error is a leading cause of data breaches. Regular cybersecurity and compliance training for all employees is critical. Buyers appreciate practices that have a culture of digital responsibility across the organization.
Building Digital Trust During Due Diligence
Technology and cybersecurity improvements are valuable—but they must be clearly communicated during the sales process.
Be prepared to present organized materials to buyers, including:
- Cybersecurity assessments and updates
- HIPAA compliance records
- Technology system inventories
- Staff training schedules and documentation
- Incident response protocols
Providing this information during due diligence can mitigate buyer uncertainty, shorten deal timelines, and even improve your leverage during negotiations.
Set Your Practice Apart With Digital Readiness
Selling a healthcare practice in today’s market calls for more than just strong financials and clinical performance. Digital resilience is a key area for buyers to scrutinize, along with operational efficiency and minimized risk exposure.
By investing in cybersecurity, upgrading core systems, maintaining clean data and promoting a culture of digital responsibility across the organization, you can not only protect your current operations but enhance your market value.
In an increasingly tech-driven healthcare landscape, practices that demonstrate strong digital readiness will stand out. By preparing your technology foundation and readiness thoughtfully, you can position your practice for a smoother, more profitable sale.
About Ian Goldberger
Ian Goldberger is a Principal of transaction advisory in the Business Consulting Services (BCS) practice at Kaufman Rossin and helps lead the firm’s Transaction Advisory practice. Ian advises companies through capital raise and merger and acquisition initiatives including strategic planning, financial modeling, business plan preparation, financial and operational due diligence and post-deal integration planning and execution. Ian and the BCS team also work hand-in-hand with companies through financial complexities, as well as optimizing operational performance to improve profit margins and overall bottom-line earnings.
