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Buying a Healthcare Business

Laura DiFrancesco

Feb 17, 2026

What are the implications of buying a healthcare business?

Watch this episode on YouTube or listen on Spotify and Apple Podcast Welcome back to another episode of Dealmaking with Laura DiFrancesco! In this episode, Laura covers some important factors to consider when buying a healthcare business. To start she goes into the different types of healthcare businesses, including nursing homes, pharmaceutical companies, telehealth services, and more. She then goes into the importance of human resources, how public policy can have an impact, patient data and privacy, and reputation and legal risks. This episode serves as a helpful guide to anyone looking for help to navigate through acquiring a healthcare business. 



What You’ll Learn


Healthcare is Broad, but Always Regulated 

// “Healthcare” can mean nursing homes, med spas, telehealth, IV clinics, pharma, or medical practices; every subtype has different regulatory and licensing requirements. 


Transferability is the #1 Deal Risk 

// Some healthcare businesses can’t be owned by unlicensed individuals, or require licensed providers to hold ownership. Immediately after LOI, buyers must confirm whether the business can legally transfer and what approvals are required (regulators, insurers, government agencies). 


Expect Longer, Less Controllable Timelines

// Regulatory approvals, payer approvals, or government contracts often introduce third‑party delays. These are outside the buyer’s control and must be built into the deal timeline.This explains why healthcare sees so much M&A vs. startups—buying is often easier than building.


Public Policy Can Directly Impact Value

// Many healthcare businesses depend on government-funded programs. Buyers should assess how sensitive revenue is to political or regulatory shifts and whether current reimbursement levels are unusually favorable. 


People are the Business

// People are the most critical asset. Buyers should be aware of key risks such as the seller being the primary provider, long-standing patient-provider relationships, and relationship-driven employees. Smart buyers mitigate these risks through strategies like retention bonuses, equity or incentive programs, and early cultural and relationship due diligence.


Importance of Patient and Data Privacy

// HIPAA compliance is mandatory and high-risk. Buyers must assess data systems, privacy policies and SOPs, and any past breaches or compliance failures. 


Malpractice and Legal Risks Must be Understood

// Buyers must evaluate malpractice insurance coverage, claims history, and whether tail insurance is required. Healthcare litigation can materially damage enterprise value. 




Episode Highlights:

[1:38] Frequently asked questions 

[2:40] What is a healthcare business? 

[4:45] Closing timeline

[6:10] Public policy impact 

[6:33] Importance of human resources 

[9:03] Key considerations 

[10:20] Patient data and privacy 

[11:39] Third party relations

[13:12] Reputation and legal risks 

[16:37] Outro 


Resources Mentioned


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Credits

Host // Laura DiFrancesco

Executive Producer // Teagan Rowland 

Editor // Ava Balliet

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