12-Bed In-Network Detox & Residential Treatment Center, Sherman Oaks CA

Full Editorial Writeup

This is a 12-bed licensed detox and residential behavioral health treatment center in Sherman Oaks, a desirable submarket of Los Angeles County. The facility delivers detoxification, substance abuse recovery, and dual-diagnosis services from a furnished residential setting, and carries two credentials that take real time and money to earn: DHCS state licensing and Joint Commission accreditation. It also holds in-network contracts with multiple major insurance carriers, which is the single most valuable asset in a treatment business because it is the difference between predictable payer reimbursement and the feast-or-famine economics of out-of-network cash-pay rehabs.

The listing reports $3.6M in revenue against $900K in cash flow, a roughly 25% margin, with reported occupancy of 90 to 100% across its 12 beds. Management describes a significant 2026 turnaround driven by better reimbursement strategy, higher occupancy, and tighter operations. Importantly, the $900K figure is described as management's anticipated performance subject to verification, so a buyer is partly underwriting a forward projection rather than a clean trailing number.

The real growth thesis is payer expansion. The facility is actively pursuing in-network agreements with Kaiser Permanente, UnitedHealthcare, and Anthem Blue Cross. Each of those would meaningfully widen the referral funnel and admissions pipeline. Combined with an experienced clinical and administrative team that already runs day-to-day operations under a semi-absentee owner, this is pitched as a turnkey entry point into behavioral healthcare without the 12-to-18 month slog of licensing and accreditation from scratch.