Selling Your Practice to Private Equity: How to Talk to Your Patients

If you’re selling your practice to private equity, here’s what to consider and how to navigate this difficult conversation with your patients.

More local healthcare practices are selling their businesses to private equity, and some have chosen not to inform their clients. As a small healthcare practice owner, you may feel hesitant to tell your patients about this change.  Thinking through how it could affect patient care and trust can help you decide how to move forward.

Consider the Effect on Your Patients’ Healthcare

Many people choose small healthcare practices because they are concerned about the cost and quality of care at larger corporate practices. Selling your practice to private equity could change the services you provide, potentially affecting the care your patients receive—whether or not they remain with your practice. Providing this information allows patients to make informed decisions about their healthcare.

Your business decision may have consequences for your patients’ access to care, so it’s important to let them know whether your practice will still meet their needs after the sale.  Be transparent and communicate any positive aspects of the change where appropriate. If you’ve built strong relationships with your patients over the years, they will trust your words, even if they’re disappointed about the change itself. Open communication can help them make their decision and, if you’re persuasive, may encourage them to stay.

Maintaining Patient Trust Through a Practice Sale

You may worry about your patients’ confidence in your practice following a private equity sale. However, if they find out about the sale later—through an outside source or on their own—they may feel misled or betrayed and lose trust in your practice anyway. As a healthcare professional, protecting that trust should be a priority. 

Being transparent about significant changes reinforces your credibility and upholds your patients’ trust. While the sale may upset some patients, being upfront and direct demonstrates your commitment to honesty, even when delivering difficult news.

Let your patients know how much their loyalty has meant to you and how much you have valued serving them. Explain why you’re leaving (without sharing unnecessary detail), what you plan to do next, and what they can expect from the practice moving forward. 

Keep in mind that some private equity firms may require sellers to sign non-disclosure agreements (NDAs) as part of the sale. These NDAs can limit what you share about the change in ownership, including when and how you inform patients. If you’re bound by such an agreement, consult legal counsel to understand your obligations and explore ways to remain transparent within those limits. For instance, while you may not be able to “advertise” the change, you might still answer patients’ direct questions honestly or provide general updates about the practice’s future direction.

Show Your Patients that You Care

At the end of the day, you’re free to make the business decision you believe is best. However, it’s your responsibility to guide your patients through this transition.

While it’s ideal for patients to remain with the practice, your role is to support them in meeting their healthcare needs. Be professional, respectful, and sincere in your communication to demonstrate that you care about them—even as you leave your practice behind.

Get Legal Support

Selling your healthcare practice to private equity involves complex decisions and legal considerations. Our experienced healthcare lawyers can guide you through the process, ensuring you meet your obligations while protecting your business and reputation. If your practice is in one of the states where we have licensed attorneys, schedule a consultation today to learn how we can support a smooth and compliant transition.

This blog is made for educational purposes and is not intended to be specific legal advice to any particular person. It does not create an attorney-client relationship between our firm and the reader. It should not be used as a substitute for competent legal advice from a licensed attorney in your jurisdiction.