Established Pulmonary, Sleep & Internal Medicine Practice, Los Angeles County

$3.0M

Revenue

$920K

SDE

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Full Editorial Writeup

This is a multi-specialty medical practice in Los Angeles County running through two affiliated medical corporations, focused on pulmonary medicine, sleep medicine, internal medicine, and chronic disease management for adult patients. Founded in 2005, the practice has built a loyal patient base and longstanding referral relationships, generating roughly $3 million in combined 2025 revenue with an adjusted EBITDA of $920,000, a healthy 31% margin for a physician practice. It operates with a trained clinical and administrative team, giving a buyer turnkey infrastructure rather than a founder-dependent one-man shop.

The practice sits in one of the largest and most competitive healthcare markets in the country, where demand for pulmonary, sleep, and chronic disease services skews older and more recurring. Sleep medicine and pulmonary care in particular benefit from an aging population, high rates of sleep apnea and COPD, and recurring follow-up visits, which is the kind of sticky, non-discretionary demand that holds up in any economy.

The listing is positioned for a range of buyers: an individual physician, an established group, an IPA, an MSO, or a strategic consolidator seeking immediate Southern California presence. That breadth matters because the exit optionality and the acquirer pool are both deep, and physician practices with this profile are prime roll-up targets. No asking price is disclosed, and 100% financing is advertised, so the entry economics are still an open question.

Why we like it

Earnings quality is strong on paper: $920k adjusted EBITDA on $3M revenue is a 31% margin, well above typical primary-care economics and driven by higher-reimbursement pulmonary and sleep services. The revenue is recurring through chronic disease management and repeat follow-up visits, which smooths cash flow versus one-time procedural practices.
The moat is referral relationships and specialty depth built over nearly two decades since 2005. Pulmonology and sleep medicine require credentialed specialists and established referral pipelines from primary care, which are slow and expensive for competitors to replicate, creating real switching friction for the patient base.
Demographic tailwinds are squarely behind this. An aging population, rising obesity, and high sleep apnea and COPD prevalence mean demand for these exact services is structurally growing, and none of it is discretionary spend that patients cut in a downturn.
There is a trained clinical and administrative team already in place, so this is not a solo-physician business that collapses when the seller leaves. That infrastructure supports the entire spectrum of buyers named in the listing, from individual physicians to MSOs, giving strong exit optionality.

How to improve it

Recruit an advanced practice provider (nurse practitioner or PA) to extend physician capacity at lower cost per visit. This is the fastest lever to lift patient throughput and margin without adding a full physician salary, and it directly monetizes the existing referral demand.
Audit the payer mix and renegotiate underperforming insurance contracts. In a market with major payers present, even a few points of rate improvement on high-volume CPT codes flows straight to EBITDA, and specialty practices often leave money on the table on old contract terms.
Build out a formal sleep study and DME (durable medical equipment) offering if not already captured in-house. Sleep testing and CPAP-related revenue are high-margin, recurring, and keep patients inside the practice rather than referring the ancillary revenue out.
Systematize physician and community referral marketing with a dedicated liaison. The listing cites longstanding referral relationships as a core asset, so formalizing outreach protects that pipeline and grows new-patient volume rather than relying on the departing owner's personal ties.
Add complementary specialties using the existing administrative infrastructure and leased space. Cardiology or allergy tie naturally into a pulmonary and sleep patient base, spreading fixed overhead across more revenue lines and lifting the whole margin structure.
Tighten scheduling and no-show management with automated reminders and waitlist backfill. Chronic-care follow-up visits are predictable, so filling gaps and reducing no-shows converts existing capacity into free incremental margin.
Formalize a chronic care management (CCM) billing program under Medicare. These recurring monthly care-coordination codes are underused by many practices and create a steady annuity stream from the existing chronic disease patient panel.

Diligence notes

The financials describe adjusted EBITDA of $920k but the listing also lists Cash Flow (SDE) as Not Disclosed, so clarify exactly what the $920k reflects and what add-backs were used. Physician compensation is the critical adjustment: confirm whether the number is before or after paying a replacement physician's market salary, because that determines true buyer earnings.
This runs through two affiliated medical corporations, so map the legal and ownership structure carefully. Understand how revenue and expenses flow between the entities, whether both are being sold, and how California's corporate practice of medicine rules and MSO structuring affect a non-physician buyer.
Concentration risk needs to be checked on both sides: how much revenue depends on a small number of referring physicians, and how much rides on the departing owner's personal patient and referral relationships. A practice that loses 20% of referrals when the seller walks is worth far less than the headline implies.
Verify payer mix, reimbursement trends, and any Medicare or commercial billing exposure. Pull the coding history, denial rates, and any prior audits, since specialty practices with high sleep and pulmonary volume can carry documentation and medical-necessity audit risk.
No asking price is disclosed and 100% financing is advertised, so establish the valuation and deal structure early. Confirm what the multiple implies on real post-physician-comp earnings, and stress test whether the cash flow covers debt service if you are financing the full purchase.
Confirm physician credentialing, malpractice history, licensing, and whether key clinical staff will stay. In a specialty practice the credentialed providers ARE the business, so retention agreements and the buyer's own ability to be credentialed with payers are make-or-break items.

Source

Originally listed on BizBuySell. View original listing →