Concierge Primary Care Practice, 25-Year Corrales NM Clinic

$1.3M

Revenue

$545K

SDE

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Full Editorial Writeup

This is a concierge primary care practice founded in 1999 and located in Corrales, New Mexico, an affluent village consistently rated among the best places to live in the state and situated 20 minutes from downtown Albuquerque. The practice runs a hybrid revenue model: it charges recurring membership fees for concierge access while also remaining in-network with payers, so it continues to collect Medicare and commercial insurance reimbursements on top of membership dues. That dual revenue stack is unusual and valuable, because most cash-only concierge practices leave insurance dollars on the table.

The business generates roughly $1.26M in gross revenue and $545K in cash flow, a strong 43 percent owner-earnings margin driven by a single physician plus three full-time staff. Operations run on Athena EHR with member billing management provided at no cost through a strategic partnership, which lowers overhead and administrative drag. The practice operates from a renovated 2,300 square foot clinic on 3 acres with four exam rooms, previously configured to accommodate two physicians.

The seller is a physician of 25-plus years who is retiring, and the clinic reportedly receives frequent new patient requests, meaning membership capacity exists to grow. The building is owned by the seller and offered for lease rather than included in the sale, so a buyer acquires the operating practice and goodwill, not the real estate. The main dependency is a single practicing physician, which is the central risk to underwrite.

Why we like it

Earnings quality is excellent for a solo practice, with $545K cash flow on $1.26M revenue for a 43 percent margin. The hybrid model layers recurring membership dues on top of Medicare and commercial insurance reimbursements, giving two independent revenue streams rather than a single cash-only pipeline.
The moat is patient stickiness and switching cost. Concierge patients pay a premium for direct access to their physician and rarely leave once the relationship is established, and the in-network status widens the addressable base beyond cash-pay-only concierge competitors.
Healthcare demand is structurally recession-resistant and Corrales is an affluent, growing market where residents can and will pay for premium primary care. The listing notes frequent new patient inquiries, signaling demand exceeds current supply.
The operational plumbing is already built and cheap to run. Athena EHR plus member billing management provided free through a strategic partnership means a buyer inherits a low-overhead back office rather than having to build one, and the clinic was previously sized for two physicians.

How to improve it

Recruit a second physician or advanced practice provider to absorb the frequent new patient requests the practice already receives. The clinic has physically accommodated two physicians before, so incremental capacity requires labor, not capex, and could materially lift both membership and reimbursement revenue.
Raise or restructure membership pricing and audit the current fee tiers. Concierge patients are price-insensitive relative to the value of direct physician access, and even a modest annual dues increase drops almost entirely to the bottom line given the fixed cost base.
Build a systematic patient referral and local marketing engine rather than relying on inbound word of mouth. Given demand already outstrips supply, formalizing referral incentives and targeting affluent Albuquerque commuters could fill new provider capacity quickly.
Add ancillary recurring services such as chronic care management, wellness programs, labs, or telehealth follow-ups. These raise revenue per member, deepen the relationship, and further insulate the practice from any single revenue source.
Reduce physician dependency by documenting protocols and building a mid-level provider layer before the seller fully exits. This de-risks the single-doctor concentration and makes the practice more transferable and more valuable at your own eventual exit.
Negotiate the building lease terms carefully or explore an option to purchase the 3-acre property. Locking in favorable long-term occupancy protects the practice from a landlord who is also the exiting seller and preserves the option to control the asset later.

Diligence notes

Quantify the revenue split between recurring membership dues and insurance reimbursements. The durability and multiple of this business hinge on how much of the $1.26M is contractual recurring membership versus fee-for-service claims that could compress with reimbursement changes.
Assess single-physician concentration risk directly. The entire practice runs on one retiring doctor, so understand how many patients follow the physician personally versus the brand, and model attrition if a new provider steps in during transition.
Verify the $545K cash flow add-backs and confirm what the new physician's market-rate compensation would be. If the owner's clinical labor is not fully expensed in the SDE, the true operating profit to a buyer who hires a replacement doctor is lower than the headline number.
Review the Athena EHR and free member billing management partnership terms. Confirm this arrangement transfers to a new owner and is not personal to the seller, because losing no-cost billing would add real overhead and dent the margin.
Confirm the building lease terms, rate, and length before closing. Since the seller owns the property and is offering it for lease rather than sale, the rent structure directly affects go-forward cash flow and must be pinned down in writing.

Source

Originally listed on BizBuySell. View original listing →