Care Coordination Company Valuation
29 valuation methods · 43 industries · Results in under 10 minutes
In short
A care coordination company is valued on normalized EBITDA times a multiple chosen from the payer mix of the programs it serves: the more revenue from commercial plans, the higher the band. Contract renewals, outcomes and client concentration shape what buyers pay.
Who this is for
Owners of care coordination, chronic care management and transitional care companies working for health plans, provider groups and employers, preparing to sell or raise capital, and buyers who need contract revenue and payer mix read together.
How is a care coordination company valued?
VA values a care coordination company on normalized EBITDA: earnings after the add-backs you confirm, such as a one-off implementation cost for a new contract, so a single year's cost does not set the value. The multiple is then chosen from the payer mix, because commercial insurers pay more than government plans for the same care. A discounted cash flow checks the result, and comparable companies and precedent transactions sit alongside it. This tool is informational only. Output is driven by your inputs and does not constitute a formal appraisal or certified valuation.
What drives the value of a care coordination company?
- Contracts with health plans, provider groups and employers, their terms and renewal history
- The share of revenue from commercial plans against Medicare and Medicaid programs
- Outcomes the company can show, such as fewer readmissions and emergency visits
- Nurses and care coordinators, their caseloads, and how long they stay
- Software and data systems that clients depend on for reporting
- Revenue concentration in the largest health plan or group
What lowers the value of a care coordination company?
- One health plan or group making up most of the revenue
- Contracts up for rebid soon after a sale
- Most revenue from Medicaid programs, whose rates can be cut
- Outcomes the company cannot show with data
How much is a care coordination company worth? A worked example
Contracts with health plans and the multiple
A care coordination company has $1.5 M of normalized EBITDA, with 30% of revenue from commercial insurers and the rest from government plans. VA's healthcare model applies its range for that mix, 5.5× to 7.5× with 6.5× in the middle: about $9.75 M before debt and before its discounted cash flow check. At 50% commercial, the range moves to 7× to 9.5× and the value to about $12.4 M.
Illustrative figures from the industry model alone. A full report blends it with a discounted cash flow, comparable companies and precedent transactions.
Value your care coordination company in under 10 minutes
- 1.Upload your financial statements, or type the figures in.
- 2.Confirm the add-backs and the industry details the model asks for.
- 3.Get a valuation range, the methods behind it and a PDF memorandum.
Which numbers matter most?
Normalized EBITDA
EBITDA after the add-backs you confirm, such as resetting an owner-clinician's pay to what the clinical work would cost to hire. The payer-mix multiple applies to it.
Payer mix
The share of revenue from commercial insurers rather than government plans. It chooses the band of multiples VA's healthcare model applies: the higher the commercial share, the higher the band.
Contract renewal history
The share of client contracts that renewed at the end of their term. Buyers read it as the best sign the earnings will hold.
Top client share
The part of revenue from the largest health plan or group. Contracts can be rebid, so buyers price concentration closely.
Caseload per coordinator
Patients managed per nurse or coordinator. Buyers read it with outcomes to judge capacity and quality.
What do you need to value a care coordination company?
- Profit and loss statements and balance sheets, ideally for the last three years
- Figures for the current year to date
- A list of add-backs: the owner's pay and perks, and any one-off costs
- Loan and lease balances
- A list of client contracts with terms, renewal dates and pricing
- Revenue by client and by program type
- Outcome reports shared with clients
Example scenarios
Moving from Medicaid to commercial plans
A company that works mainly for Medicaid managed care plans wins contracts with commercial plans. VA's healthcare model moves it to a higher band of multiples, and the worked example shows what that does to the value of the same earnings.
One health plan behind most of the revenue
A company earns most of its revenue from one health plan's contract. The model values the earnings you enter; a buyer knows the contract can be rebid, so they pay less or ask for part of the price to depend on the renewal.
Further reading
How to Value a Dental Practice: Collections, EBITDA, and What DSOs Actually Pay
Dental practice valuation explained: the percentage-of-collections rule, when EBITDA multiples take over, what drives DSO offers, and a worked example for a $900K practice.
How to Value an HVAC Business in 2026: SDE and EBITDA Multiples
HVAC businesses sell for about 2x to 3.3x SDE for small shops and 5x to 9x EBITDA for larger firms. See 2026 multiples by size and what drives the number.
Add-Backs Explained: Which Adjustments Survive Diligence
Add-backs adjust reported earnings to reflect true business profitability. Learn which add-backs buyers accept, which they reject, and how normalization affects the valuation.
Frequently asked questions
How is a care coordination company valued?
On normalized EBITDA times a multiple chosen from the payer mix of the programs it serves. A discounted cash flow checks the result, and comparable companies and precedent transactions sit alongside it.
Why does payer mix change the value?
Commercial insurers usually pay more for the same visit than Medicare or Medicaid, and government rates can be cut by regulation. VA's healthcare model moves to a higher band of multiples as the commercial share rises.
Do outcomes data raise the value?
They do not change the model's multiple, but they help the company keep and win contracts, and buyers ask for them before they believe the earnings will hold.
Does client concentration lower the value?
The model values the earnings you enter. Buyers still pay less when one health plan makes up most of the revenue, because losing that contract would change the business.
What if the company is paid per member per month?
Enter the revenue as it is paid; recurring per-member fees count in the earnings like any other revenue. Buyers read them as steady when contracts renew.
Is this a certified appraisal?
No. This is an informational estimate. A bank loan, a partner buyout or an estate matter may require a certified business appraisal, which this does not replace.
Terms used on this page
- Normalized EBITDA
- EBITDA after add-backs, so it shows what the business earns in a normal year under a new owner.
- Add-backs
- Costs added back to reported earnings because a new owner would not bear them: personal expenses run through the business, one-off costs, or owner pay above what the role would cost to fill.
- Payer mix
- The split of a practice's revenue between commercial insurers, government plans such as Medicare and Medicaid, and patients who pay directly.
- Valuation multiple
- The number earnings are multiplied by to reach a value. It rises with how durable the earnings are and how easily a new owner can keep them.
- Enterprise value
- The value of the business itself, before debt is subtracted and cash added. The owner's proceeds come from what is left.
- Precedent transactions
- A method that values a business at the multiples paid in past sales of similar companies.
As featured in
Value your care coordination company
Get a valuation range with the methods behind it and a PDF memorandum in under 10 minutes.
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Last reviewed September 26, 2026 against VA's valuation models.