UNDER LOI: Tech 2444:Turn-key, profitable CLIA LAB in South West with Major Insurances

UNDER LOI Tech 2444:Turn-key, profitable CLIA LAB in SW with Major Insurance Contract

Major Insurance Contracts, Debt-Free


This is a 4-year old, clinical laboratory serving skilled nursing home patients as well as referrals from doctors. It has most major insurances including Blue Cross, Aetna, United Health, Humana, Medicare and several Medicaids. In late August 2017, it was forced to shut down for five months because of flooding and damage caused by Hurricane Harvey in TX area. Although the building where the lab is, was flooded, the lab itself did not suffer any damage because it is on a higher floor. The lab was not operational during this time but did manage to keep its clients by sending the samples to an outside lab. However, it did affect its growth and profitability in 2017.

In 2018, the lab has done well and is on track to generate about $1.1M in revenue and about $800K in EBITDA. The profit margin is rather high for the lab is because half of its patients, particularly from skilled nursing facilities are uninsured and are cash patients.

The Lab offers STAT and routine blood and Urinalysis tests on site immediately after collection and results would be available same day. STAT results are available in an hour and others in 4-24 hours. Esoteric or complex blood tests would be collected and sent to Reference laboratory. It guarantees results for routine chemistry and hematology within 24 hours.
The lab is currently medium complexity but can become high complexity in about 3 months’ time by validating the instruments.

The lab comes completely debt-free as all equipment are owned. The owner is looking to sell because she wants to pursue her interests in a related healthcare field. The asking price of the lab is $2.5M, which is very reasonable, for a profitable lab, which is turnkey and has all major insurance contracts. The Seller is looking to pursue other professional interests.

MAJOR ASSETS AND TESTS

The lab comes with the following major assets:

  • Biobase Pearl (for general Chemistry)
  • Triage (for Drug Screening)
  • Afinion (for Hemoglobin A1c)
  • Aimstrip Analyzer (for Urinalysis)
  • QBC analyzer (for CBC)

IN-NETWORK CONTRACTS

The lab comes with many difficult to get network contracts. These include:

  • MEDICARE
  • MEDICAID
  • BLUECROSS BLUESHIELD MEDICARE/MEDICARE OR MANAGED CARE
  • BLUECROSS BLUESHIELD PPO 2017
  • UNITED HEALTHCARE
  • AETNA
  • HUMANA
  • CIGNA
  • TEXAN PLUS
  • SELECT CARE OF TEXAS
  • AARP
  • GIHA-VA
  • MOLINA MARKET PLACE
  • AMERIGROUP

OPPORTUNITY HIGHLIGHTS

  • Turn-key profitable lab with CLIA, Medicare and hard-to-get commercial insurances
  • Buyer would save time and money avoiding lengthy 12-18 month process of getting CLIA and Medicare licenses
  • Profitable with high margins due to 50% cash-pay patients
  • Debt-free

FINANCIALS

2018 projected revenue (from 11 months data): $1.1 M; EBITDA: $800K

The asking price is $2.5 Million.

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