How Strategic Clinic Closures Boost Practice Health
Authored by: Frank Vinopal — Partner, CPA | Date Published: January 5, 2026
Growth is often the goal for audiology practices. Opening additional locations can increase market presence, improve patient access, and create new revenue opportunities. But as many multi-location owners eventually discover, growth also introduces complexity. What once felt manageable at one or two clinics can become significantly more challenging as the organization expands.
Each clinic requires staffing, marketing, equipment, management oversight, and financial investment. Consistency becomes even more critical as you grow. Every location must follow the same core procedures, patient experience standards, and operational workflows to maintain efficiency and protect your brand. Some locations become standout performers, while others drag down the practice. When one location consistently underperforms, practice owners face one of the hardest decisions in business: whether it’s time to close the doors.
Consider your practice like a sports team. If one player continuously slows the team down, the coach may bench or replace them, not out of punishment, but to help the entire team perform at its best. Closing a struggling location can have that same performance-boosting effect.
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The Hidden Cost of an Underperforming Location
An underperforming clinic rarely fails quietly. Even when losses appear modest on paper, the true cost is often far greater than the income statement reveals.
Management time is one of the underestimated expenses in a growing practice. Locations that struggle typically require more oversight due to staffing, scheduling, marketing, or operational challenges. This pulls time and focus away from high-performing clinics and the ability to pursue long-term strategic priorities.
Financial drag is another concern. Profitable clinics often end up subsidizing weaker ones, reducing overall margins and limiting reinvestment opportunities. Over time, this dynamic can erode cash flow, constrain growth, and increase financial risk across the organization.
What Performance Metrics Do You Need to Look At?
Deciding to close a location is never easy, but the choice becomes clear when you look at the data.
Here are the key metrics to review:
- Revenue vs. Expenses
Is the clinic consistently generating less revenue than it costs to operate (rent, utilities, salaries, etc.)? - Profitability per Location
Calculate the actual net profit of each clinic. Comparing locations provides the context and highlights outliers. - Patient Volume & Growth Trends
Is the clinic experiencing stagnation or decline while others grow? Slow patient acquisition may indicate deeper market issues. - Provider Utilization
If clinicians aren’t being scheduled efficiently, you’re paying for idle time. - Return on Investment (ROI)
Is the clinic producing an acceptable return based on the capital originally invested? If not, what are the chances it ever will? - Market Share & Competition
Has the competitive landscape shifted? For example, did a large retail chain or ENT group open nearby?
When multiple performance metrics decline, it’s a strong sign that it may be time to cut back.
What Happens After a Strategic Closure?
While the decision itself is difficult, many practice owners are surprised by what happens after an underperforming clinic is closed.
Financial performance often improves quickly. Removing persistent losses can strengthen margins and stabilize cash flow across the organization. More importantly, leadership regains focus. Time, energy, and capital that were previously tied up can be redirected toward growth initiatives that deliver real returns.
High-performing clinics benefit the most from this reallocation. Marketing budgets can be concentrated in areas with the strongest demand. Clinical staff can be assigned appropriately. Equipment and technology investments can be made with confidence, knowing they will support locations with proven performance.
Operational simplicity is another advantage. Fewer problem areas make it easier to maintain consistent standards, streamline workflows, and support teams effectively. Over time, this improved efficiency enhances both patient experience and staff satisfaction.
From a valuation perspective, a leaner, more profitable practice is also more attractive, whether the owner is preparing for a future sale or simply strengthening long-term financial health.
Can You Sell the Clinic Instead of Closing It?
Closing a clinic doesn’t always mean walking away with nothing. In many cases, partial exit strategies can recover value and reduce disruption.
Patient records can be transferred or sold to nearby practices, ensuring continuity of care while recapturing value. Equipment can often be sold to other providers or medical organizations. In some situations, an entire location may be attractive to a buyer seeking immediate entry into a specific market.
Exploring these options before closing allows owners to soften the financial impact and maintain goodwill within the community.
The Decision-Making Process
If you’re considering closing a location, take a structured approach:
1. Analyze your Data
Let the numbers drive your decision.
2. Consult with a CPA
They can help evaluate long-term implications and alternatives.
3. Build a Clear Exit Strategy
Plan out:
- How to transition patients
- What to do with staff
- How to communicate the change
- What to do with leased space, equipment, and inventory
A thoughtful closure plan protects your brand and ensures continuity of care.
Conclusion
Closing the doors is never easy, but it can ultimately support a smarter decision. By cutting an underperforming clinic, you can strengthen your overall practice, improve profitability, and free up the resources needed to focus on the clinics that truly make an impact.
Not sure if it’s time to close a location? Let’s talk. Reach out for guidance, and we’ll help you map out the best path for your practice’s long-term success.