VSD, evaluation, and exit options
Review the clinical component, implementation support, financial framework, and the steps used to evaluate potential offers.
Because the practices need something that connects them.
A portfolio containing Cardiology, Pain Management, Family Practice and Internal Medicine practices needs a common operating element.
VSD provides that nexus.
It also gives participating practices an established ancillary service capable of improving patient care while potentially increasing revenue and profitability.
This combination of clinical value, recurring ancillary revenue and scalability is exactly the type of portfolio desired by the public markets. Make sure that you speak to the public company facilitating the transaction as buyers have already been identified.
VSD is a series of painless, non-invasive diagnostic tests designed to help physicians identify cardiovascular and autonomic nervous system abnormalities.
The objective is to identify problems earlier before they result in more serious complications.
VSD can help practices:
VSD has an 18+ year history of stable reimbursements and is designed to fit into the normal operations of participating medical practices.
Better patient care and stronger practice economics do not have to be competing objectives.
Appropriate VSD testing can create recurring ancillary revenue while providing clinically useful information.
Participating doctors will have an opportunity to speak directly with practices generating $50,000 to $100,000 or more per month in VSD reimbursements.
VS Diagnostics can also provide information concerning testing codes and projected reimbursement applicable to your geographic area.
VSD can provide substantial support.
Depending upon the arrangement selected, VSD can assist with:
Identifying patients who may benefit from testing and for whom testing may be medically appropriate.
Helping schedule appropriate patients.
Assisting with the testing process when desired.
Providing billing support.
The objective is to make implementation as close to turn-key as possible and minimize disruption to your existing practice.
You should not have to make a long-term decision before you know whether the strategy works for you.
VSD can be financed with a six-month payment deferral, providing an evaluation period with no initial out-of-pocket equipment payments.
During those six months you can:
If you want to proceed, you determine how and when you want to sell.
If you decide not to proceed during the evaluation period, the program provides a process for removing the VSD equipment and having the financing obligation assumed.
VSD can potentially create two different paths.
Participate in the Zenyte portfolio and evaluate offers based primarily upon practice collections and the valuation of the completed portfolio.
Target: 5x collections or more.
VSD may increase practice profitability through ancillary revenue.
That can potentially make the practice more attractive to private-equity and other EBITDA-focused buyers.
VSD works with buyers that may value qualifying practices at approximately 8x–12x EBITDA, depending upon the particular practice and transaction.
There is no reason to limit yourself to one type of buyer before you know what each market may offer.
Evaluate the opportunities and select the transaction that best fits your objectives.
One of the potential advantages of a public-market strategy is flexibility.
You may not want to retire immediately.
You may want to continue practicing while gradually monetizing the value you have created.
Depending upon the ultimate transaction structure, you could potentially sell:
—or another negotiated percentage of your practice.
This may provide substantially more flexibility than a traditional all-or-nothing practice sale.
Any tax consequences should be reviewed with your own tax and financial advisors.
For the Zenyte strategy, the relevant revenue measurement is gross collections.
The financial review may consider:
Trailing 12-month collections
or
Average collections over the preceding three years
Basic financial documentation may include bank statements, tax returns and other information necessary to verify practice collections. The requirements are not as comprehensive as an EBITDA based sale as gross collections need to be verified.
Targeting 5x collections or more rather than accepting a conventional small-practice valuation.
Evaluate the strategy before deciding whether to proceed.
Use the deferral period to evaluate both VSD and the Zenyte portfolio opportunity.
Add non-invasive diagnostic capabilities designed to identify potential problems earlier.
Create an ancillary revenue stream while increasing practice profitability.
Public markets, strategic healthcare buyers and potentially private equity.
You decide when to sell, how much to sell and which offer to accept.
Learn how the portfolio is assembled, how your practice is evaluated and how the public-market strategy works.
Understand why the portfolio can command a higher revenue multiple and how the public-market transaction is structured. Ask – “Why will I be paid 5x collections for my practice?”
Review the VSD technology, clinical applications, reimbursement information and implementation process.
You can also speak to doctors currently using VSD.
Begin the evaluation period without an immediate equipment payment.
Provide the documentation necessary for Zenyte to verify your collections and complete the portfolio analysis.
You will receive offers within approximately 90 days, assuming the necessary documentation is submitted promptly.
Accept an offer, negotiate further, sell only a portion of your practice, continue practicing—or decide the strategy isn't right for you.
The decision remains yours.
You spent years building your practice.
Before selling it to another doctor, accepting a traditional valuation, or signing an exclusive agreement with private equity, it may make sense to understand what the public markets could offer.
The Zenyte/VSD strategy gives qualifying doctors an opportunity to evaluate that alternative.
Evaluate the strategy. Review the numbers. Meet the people involved. Then decide for yourself.
Request a Confidential Portfolio & VSD Review