Goodwill Value in Medical Practice Transactions

Abstract

Although information on goodwill value in medical practice transactions is anecdotally known, it has not been studied or analyzed with much depth. Data was used from the 2011 Goodwill Registry, which contains health care practice transactions in the past decade. The present study examined whether financial and geographical variables correlated with and predicted goodwill value. The following statistical analyses were run to discern the general characteristics of goodwill: frequencies and descriptives, one-way ANOVA, independent-sample t-test, bivariate correlation, and linear regression. Establishing this groundwork offers future research a foundation upon which to build. There were two major findings in this study: First, suburban practices were shown to possess significantly greater goodwill value than rural practices (p = .015). Secondly, gross revenue significantly predicted goodwill value independent of earnings, region and location (p < .001). Contrary to the hypothesis, earnings did not predict goodwill value controlling for other factors.