Tech-3394: Multi-Specialty Practice in North East PA with Multimodal Imaging Center,
CLIA Lab and More
Prime Location – Excellent Infrastructure – Proven Growth Potential
This is an independent multi-specialty facility, in the medical corridor, in Eastern Pennsylvania, about an hour west of NYC. The multi-specialty facility is state-of-the art, offering a full complement of services including neurology, interventional pain management, cardiology, multi-modal imaging, laboratory services, and physical therapy.
In 2015, the current owners bought this facility, which had closed its business in December 2013. The previous seller shut it down abruptly, due to what seemed at the time as a very serious, life-threatening health issue. Before he sold his practice that provided imaging services, neurology, pain management, sleep studies and more, the practice was grossing between $6-7 million and had an EBITDA was around $3 million. Looking at the very attractive infrastructure of the place, the current owner, who is a cardiologist, felt that he could revive the business by bringing in a right group of physicians, and once again can make it a thriving business.
Unfortunately, he was not able to get the right physicians on board, and he also had initial start-up problems – inherited equipment that didn’t quite work as advertised, property infrastructure problems such as leaky roofs, AC system, and generator system. The owner spent over a million dollars in upgrading the infrastructure ($900K in equipment and about $155K in the property repairs) and after three and a half years of hard work, has now brought the practice to a positive EBITDA. In 2018, the revenue was about $2.2 million, and EBITDA was about $192K. However, with the right physicians in place, it could have been a far better picture.
The owner is now 72 years old, and last year he had an accident that has affected his health. At this stage in life, he does not have the energy and desire that he had four years ago and feels that a more energetic group with more resources and medical personnel can take this far much faster than he can. It is ideal for a satellite clinic of a hospital, an urgent care center, a multi-specialty practice, a large imaging center, etc., The facility has all the resources to make it a thriving business for the right buyer.
Its assets include:
- Siemens Symphony 1.5T high-field MRI
- Toshiba Ultra Open MRI
- CT Scanner 128-slice
- Mammography Machine
- GE Vivid Color Flow Ultrasound
- Digital X-ray
- Natus EEG
- Viking Quest EMG
- Konica / Minolta PAC System
- Labdaq LIS system
- Chemistry Analyzer
- Beckman Coulter Diff2 Hematology Analyzer
- Holter monitor
- Treadmill for stress testing
- Physical Therapy facility set up
The facility has full-fledged multi-modal imaging center that has High-field and open MRI machines, 128-slice CT scanner, Mammography Machine, Ultrasound machine, and digital X-ray. It is the only free-standing imaging center with full modalities in the area. It also has a CLIA-accredited moderate complexity lab in-house for running many common blood or urine tests in-house. And it has newly created Physical Therapy area as well.
The facility has 16-18 exam rooms and can easily accommodate 8 to 10 physicians and staff. It is ideal for a multi-specialty, primary physician, or urgent care practice.
- Only independent Multi-modal imaging center in the area – includes virtually all modalities including High-field as well as Open MRI, 128 slice CT machine, Mammography with CAD, Ultrasound, Echocardiogram, and Digital X-ray.
- Facility with 16-18 exam rooms
- Can easily accommodate 8-10 physicians
- New Upgraded rooms for EMG, EEG
- Cardiology Room for stress test
- Physical Therapy Room
- 3 Sleep rooms (currently not being used and can be re-purposed
- Physician Office Lab with new equipment and new LIS
- Well-equipped Physical Therapy room
- Old pharmacy room (that can be reused)
- About 17,000 sq. ft. between two adjacent building (will have new roof and has a new generator, new phone system, many new AC units)
- Upgraded and newer equipment
- Ample parking and right in the heart of Medical Alley
REASON FOR SALE
The physician owner had ambitious goals of assembling a team of physicians and bringing the clinic back as a thriving business when he bought this in 2015. However, early start-up troubles including expensive upgrades to the equipment, inability to assemble the right team, and an accident in 2018 that has affected his health has taken a toll on him. He has brought the clinic now to positive EBITDA and has respectable revenue, but far short of what he thought he could achieve. He is now 72 years old and would like someone with more resources and energy to take over this clinic and make it a thriving business again.
- Revenue (2018): $2.17M (148% increase)
- EBITDA (2018): $192K (-$1.1M previous year)
- Asset Value: $2.2 M
- Asking Price: $2.2 M for business (at asset value); $4.2M for real estate (appraised value)
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