This unique, forward-thinking medical practice focuses exclusively on mobile wound care services, primarily decubitus ulcers and diabetic ulcers. Patient care is provided by three MDs, of which one is the sole owner. No patients are seen in the office; home and group home visits in Oakland, Wayne and Macomb counties accommodate the needs of the approximately 450, primarily elderly patients regularly seen by the physicians. The level of patients has remained steady in recent years. The practice’s ability to grow is currently limited by its physicians’ capacity to accept new patients.
This well-established practice provides an excellent opportunity for an energetic, hands-on physician who enjoys treating patients and growing the practice. Based on the business's cash flow and with certain buyer-specific stipulations, a lender has pre-qualified the practice for purchase by a qualified buyer under the following terms: 60% financed, 10-year term at prime rate + 2.75%, adjusted quarterly. If funded today, the rate would be 7.25%. The lender will also allow a 20% seller note on two-year standby, which the owner will consider for the qualified buyer. Under this scenario, the buyer would only need to contribute a 20% down payment.
The practice operates from a 9,100-square-foot, standalone commercial office space facility which is majority-owned by the practice owner. Approximately 15 office staff handle scheduling, billing, ordering and transcription; no patients are seen in the office. The building is available for sale and is not included in the purchase price.
The market segment targeted by this practice is bound to continue to grow at a rate higher than that of the general population. The demographic trend underpinning the growth in this segment is incontrovertible. The owner earnestly desires to see the practice successfully transitioned into the hands of the next generation, who will contribute the energy and enthusiasm necessary to care for these deserving patients and who will reap the financial benefits as well.
Key competitors are hospitals and wound care centers, both of which lack the logistics and ability to regularly and systematically treat immobile patients. Podiatrists compete with the practice in wound care, but cannot treat wounds over the entire body (some podiatrists can perform wound care below the knee). Home health care services specializing in wound care are typically staffed by nurses, who can provide only a limited subset of the treatments provided by the practice, which is staffed by MDs.
After nearly two decades of growing and operating the practice, the owner desires to transition the practice and move toward retirement. To that end, he is willing to remain on the medical staff for up to two years to mentor the new owner and support the continuity of operations, referrer relationships and revenue.
Will train for 4 weeks @ no cost. The prospective new owner will need to be a Michigan-licensed MD or DO.