Behavioral Health and Addiction Treatment Center, High-Margin OBAT and IOP Services

Price: $1,300,000
Annual Revenue: $1,708,373 Net Cash Flow: $286,018

Established more than 8 years ago, this well-regarded treatment center provides comprehensive care for substance abuse and co-occurring mental health disorders. With dual service levels, Office-Based Addiction Treatment (OBAT) and licensed Intensive Outpatient Programs (IOP), the center has built a strong reputation in the community, supported by referrals from probation officers, hospitals, and partial hospitalization programs. The business is positioned for significant growth with minimal marketing to date and a nonprofit arm in development to expand contract opportunities.

Key Investment Highlights

  • Established reputation with strong referral base and positive community reviews
  • Dual treatment levels (OBAT and IOP) offering flexibility and scalability
  • 250–300 patients in the program at any given time, with annual patient volume significantly higher
  • Low recidivism rate and high success outcomes compared to competitors
  • Experienced leadership team providing oversight with potential to increase revenue if actively engaged in patient care
  • Nonprofit arm in final stages, enabling bids for federal, jail, and drug court contracts
  • Standard employee benefits including PTO, healthcare, dental/vision, and 401(k) match

Clients & Services

  • Primary clientele: substance abuse patients with co-occurring mental health disorders, as well as mental health-only and psychiatric medication-only patients
  • Geographic focus: Norfolk, Virginia Beach, Chesapeake, Suffolk, Newport News, Hampton
  • Services include:
    • Individual, group, and family therapy for substance abuse and mental health disorders
    • Medication-Assisted Treatment (MAT) including Suboxone, Vivitrol, and alcoholism treatment
    • Psychiatric medication management for depression, anxiety, bipolar disorder, schizophrenia, and other co-occurring conditions
    • OBAT entry-level treatment (highest margin)
    • Licensed IOP programs for intensive care

Location & Facilities

  • Leased 4,655 sq. ft. facility with monthly rent
  • The building includes additional suites available for expansion

Operations

  • Approximately 18 salaried employees across medical, clinical, and administrative functions
  • Strong infrastructure with clinicians and medical extenders (NPs/PAs) in each office
  • Owners provide supervisory oversight only, leaving room for increased revenue if directors choose to see patients
Listing Details

Reason For Sale: Ownership is transitioning due to retirement. With minimal marketing historically, the center presents significant upside potential for a buyer prepared to invest in growth initiatives.

Additional Information

Potential Growth:

  • Launch of nonprofit arm to secure federal, jail, and drug court contracts
  • Expansion into partial hospitalization programs lacking OBAT/IOP services
  • Marketing investment to broaden patient base beyond word-of-mouth referrals
  • Potential to expand services into additional suites within the current facility

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