Are You Sleeping on This Deal? Breaking Down a Sleep Disorder Clinic for Sale
Oct 4, 2024
Delve into the world of a sleep disorder clinic for sale in Detroit. Discover the financial prospects, including a $5 million price tag with $1.8 million net cash flow. Unpack the complexities of medical ownership and whether non-physicians can step in through MSOs. Learn about the crucial payer mix and how it affects profitability. The conversation also highlights the booming demand for sleep treatments and the potential for revenue from CPAP sales and repeat visits. Tune in for a fascinating look at an unconventional business opportunity!
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insights INSIGHT
Sleep Apnea Market Growth
Sleep apnea and related disorders have growing demand driven by obesity and screen exposure.
Clinics benefit from recurring visits and potential income from CPAP machine sales and servicing.
volunteer_activism ADVICE
Check Payer Mix Carefully
Always inquire about the payer mix when evaluating a medical practice.
Diverse payer sources impact margins and risks from reimbursement changes.
question_answer ANECDOTE
Michael's High School Weight Loss
Michael Girdley lost 90 pounds in 9 months by changing lifestyle in high school.
He shared this personal transformation to illustrate turning decisions into new opportunities.
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In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill D’Alessandro, Heather Endresen, and Mills Snell dive into the sale of a sleep disorder and attention deficit disorder medical practice based in Detroit, Michigan. With an asking price of $5 million and a net cash flow of $1.8 million, the team discusses the complexities of owning a medical practice, the revenue potential from sleep apnea treatments, and whether an owner needs to be a licensed physician. They explore the practice’s payer mix, potential technological disruptions, and whether owning the CPAP distribution side of the business is key to profitability.
Key Points Discussed:
- Payer Mix and Margins: How the mix of private insurance, Medicare, and Medicaid impacts the clinic’s value. - Physician Ownership: Whether a non-physician can own this practice through an MSO (Medical Service Organization). - CPAP Business Model: Understanding whether the clinic profits from the sales and maintenance of CPAP machines. - Market Trends: The increasing prevalence of sleep disorders and the residual income potential from repeat visits and equipment servicing.
Thanks to this week’s sponsor:
Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.
If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at chelsea@buythenbuild.com and mention us ;)
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