AMM
High Performing Value Network
AMM’s High Performing Value Network (HPVN) is a group of high achieving quality-focused practices that increases the market valuation of it’s member practices.
Normally when calculating the value or purchase price for a business, the earnings are multiplied by a factor called the Enterprise Multiple. The Enterprise Multiple is usually determined based on few simple factors:
- Industry
- Location
- Size of the business
As the size of a profitable business increases, so does the Enterprise Multiple which means that as a business grows in size it experiences geometric growth in value (i.e. a doubling in earnings for a business often more than doubles it’s market valuation).
By joining the HPVN a practice is virtually combined with similar practices, thereby presenting to market as a larger enterprise entitled to a much larger multiple.
As you can see in the adjacent example, the value of a practice can be greatly magnified even assuming no organic growth. A practice that is a member of the HPVN will therefore benefit from the aggregate earnings of the network which will call for a vastly increased market valuation.
Each individual practices’ growth then helps boost the value of other network member practices. AMM Healthcare’s mission is to assist each practice grow its value individually and stay independent while still reaping the benefits of scale that traditionally only accrued to larger healthcare organizations such as your local health system.
Eligibility to become a part of the HPVN requires a practice to be independent, value-based focused, have primary care services and be well respected for patient care within their community.
Utilizing the power of AMM Healthcare’s Empowered Practice platform and HPVN there is optimal opportunity to maximize practice valuations while keeping them clinically independent. In this way existing ownership always controls their medical practice yet can still compete and erode the advantage healthcare systems have due to their size and capitalization. We will level the playing field while continuing to put the patient first.