Virtually No Billing History (Safe from Audits) – Low Rent in a Modern Building
BACKGROUND
Established in 2023, this Lab is a New Jersey-based, high-complexity COVID and Molecular testing lab. In August of 2023, the owner struck a partnership with a party that was to oversee the operations and business growth of the Lab. However, the partnership did not work out, and the owner got back the complete ownership of the Lab earlier this year.
Just recently (Feb 2024), the Lab decided to go dormant to cut down on expenses and lay off all the staff. But the NJ Dept. of Health license and CLIA can be activated in a very short time (about 3-4 weeks), and the seller can help the buyer.
SERVICES
The Lab is certified to run COVID-19, RSS and hMPV, Flu-A, Flu-B, and Group A Streptococcus (GAS). The Seller can help bring in PGx if the buyer so desires. The Lab is participating in the CAP proficiency program, running samples 3 times a year, and has been getting 100% results. For license reactivation, the Lab can quickly run the validation studies and open the doors again for the new buyer.
LOW AUDIT / CLAWBACK RISK
This lab has billed only 12 samples, so it is truly a very new and clean lab, protecting the buyer from potential future Medicare / Payer audits.
EQUIPMENT AND BUILDOUT
The Lab has Quantstudio 5, two Quidel Solana PCR machines (on reagent rental), Kingfisher Flex, Biosafety cabinet, Refrigerator and Freezer, and many smaller items and furnitures. The Seller brought in Solana PCR as they had FDA-approved tests for all the tests that the Lab wanted to run. The seller spent about 280K in equipment, furniture, supplies and about $500-600K a year in facility build-out, validations, and start-up costs including getting CLIA and Medicare. All equipment is fully paid off except for the Solana PCR equipment, which are on reagent rental
PAYOR CONTRACTS
The Lab comes with Medicare and NJ Medicaid application is in process.
PERSONNEL
The Lab recently (February, 2024) let go its Medical Director (at $2,500 per month, PT), Technical Supervisor ($2,000 per month, PT), Lab Manager ($4,000 per month), and General Supervisor (at $96,000 per year). They can be brought back once the buyer buys the lab.
FACILITY
The Lab is in a 1,860 sq ft facility inside a secure, modern office building on the ground floor with walk-in access to the lab from the street. The facility is leased at a very attractive rent of $2,300/month, including all utilities. The tenant pays a pro-rata share of operating expenses and taxes (6.2% of each). The lease is for five years. The facility virtual tour is available with the Confidential Information Memorandum once the buyer has signed an NDA. It is in a desirable area of NJ, very close to major highways.
PRICE
This new lab with almost no billing history (safe from potential audits/clawbacks), and in friendly Novitas MAC is available for $395,000.
