Annual Revenue: $1,772,000
Net Cash Flow: $391,000
Industry: Health Care
Established in the 1990s, the company is an independent outpatient radiology center offering various diagnostic services. With revenue of over $1.7 million in 2022 and a solid 31% SDE margin, the business also owns all its medical equipment including the only open MRI in the county.
Its primary source of new patients stems from physician referrals. The company’s strategic location benefits from a concentration of healthcare practitioners, resulting in a strong referral base.
Services: The company offers a wide range of diagnostic services, covering MRI, CT scans, ultrasound, fluoroscopy, X-ray, and teleradiology contracts. With a strong emphasis on outpatient care, it maintains top-notch medical equipment owned directly by the business, ensuring accurate and efficient diagnostic outcomes.
Team: Currently, the company has a small but dedicated team of four employees, three full-time and one part-time, including an office staff member. They ensure the smooth operation of the facility, supported by contracted professionals who provide additional assistance when required, particularly during peak vacation times.
Reason For Sale:
The owners wish to retire.
Training & Support:
Owners are amenable to staying on over a 1–2-year period including a smooth transition period.
The local imaging market presents challenges due to a high concentration of healthcare practitioners and closed insurance panels. Existing physicians tend to refer patients to established imaging centers with pre-existing insurance contracts, creating a significant barrier for new entrants. The company’s reliance on physician referrals and its strategic location underlines its competitive edge in the area in which it operates.
The company’s MRI scanner is the largest open MRI scanner on the market and is valuable for scanning patients dealing with claustrophobia and those with obesity challenges. The company houses the only open MRI scanner in several counties.
Despite the challenges posed by closed insurance panels, the company’s strategic location and strong relationships with referring physicians offer significant growth potential. There is an opportunity for new leadership to capitalize on referral network by expanding the network of physicians and exploring innovative marketing strategies to attract patients.