You have been the practice manager of an outpatient clinic for five years. The practice is profitable, and the owners are ready to expand by purchasing another practice in the area. The owners have asked you to research and conduct a basic valuation of a prospective purchase: ABC Clinic.

In 1-2 pages, create a document outlining the steps you will take in the valuation process for ABC Clinic. Address the following concepts in your document - provide a brief summary for each, describing the information you will need to gather, and why, to complete the valuation:

• Review of financial statements
• Average collection period (ACP) from patient accounts
• Reimbursement trends, patterns, etc.
• Case mix and patient types
• Infrastructure and operational logistics