Should You Buy or Start Your Own Medical Practice?
By Michael Jerkins, MD, M. Ed., President and Co-founder of Panacea Financial
If you’re a physician ready to take the leap into practice ownership, you may be asking one of the most important questions of your career: Should you buy an existing practice or start your own from scratch?
There’s no universal answer—it depends on your specialty, goals, location, and risk tolerance. Understanding the tradeoffs can help you make a more informed decision.
Buying an Existing Practice
Buying an existing practice offers immediate revenue, an established patient base, and experienced staff. Lenders evaluate real cash flow, which typically makes acquisitions easier to finance. The tradeoff is less control—you inherit existing systems, culture, and any operational inefficiencies.
Starting From Scratch
A de novo path gives you full control over location, staffing, technology, and patient experience. But that control comes with delayed income and higher risk. Most practices take time to ramp, and financing can be more challenging, especially for first-time owners.
Buying Into a Partnership
A third option is buying into a group. You benefit from shared overhead, mentorship, and a path to equity. The tradeoff is less autonomy and the risk of poor cultural fit—misalignment with partners can be difficult to unwind.
The right path comes down to your timeline, your risk tolerance, and what’s available in your market.
Whichever route you choose, the right financial partner makes a significant difference.
Ready to explore your options and AMS-member discounts? Learn more and speak with a Panacea Financial practice finance specialist today.
Panacea Financial is a division of Primis Bank. Member FDIC.
Michael is the President and Co-founder of Panacea Financial and is also a practicing physician in Little Rock, AR. After earning his BBA in Economics, he deferred his medical school acceptance to teach middle school science in the Phoenix, AZ area while also earning his Masters in Education from Arizona State University. He then completed medical school at the University of Tennessee Health Science Center before finishing his residency at University of Cincinnati Medical Center and Cincinnati Children’s Hospital. With a faculty position and board certifications in both Internal Medicine and Pediatrics, Michael is able to treat patients of all ages and teach medical trainees in both inpatient and outpatient settings.