Neurology Practice, 3-Office Group in Pasco & Hernando County FL

$1.5M

Revenue

$1.5M

SDE

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Full Editorial Writeup

This is an established neurology practice operating across three offices in Pasco and Hernando counties on Florida's Gulf coast, founded in 1997. The group employs 13 people (11 full-time plus 2 contractors) and carries a real clinical footprint: three EMG machines, one EEG machine, and thousands of active patient charts. Two of the three office locations are owned real estate, though the buildings are priced separately and not included in the asking price.

Neurology is one of the more durable specialties in medicine. The patient panel skews toward chronic, ongoing conditions (headache, neuropathy, seizure disorders, movement disorders, stroke follow-up) that require repeat visits and recurring diagnostics rather than one-time interventions. That translates into a base of returning patients and predictable diagnostic revenue from the EMG and EEG equipment, which matters more in Florida given a large and aging population that skews the referral base toward exactly these conditions.

The seller's stated reason is telling: they want someone else to run the business aspects, which signals a clinician who is happy to keep practicing (or transition out) but is tired of operating the enterprise. That framing usually points to upside for a buyer who can professionalize scheduling, billing, and coding. The reported figures show $1.5M in revenue and $1.5M in EBITDA, which is almost certainly a mislabel or a single-provider owner-comp figure. Clarifying what that number actually represents is the entire deal.

Why we like it

Neurology is genuinely recession resistant and demand inelastic. Patients with seizures, neuropathy, and chronic headache do not defer care in a downturn, and Medicare and commercial payers keep paying regardless of the economy. This is exactly the kind of boring, essential cash flow that compounds without drama.
The practice owns diagnostic equipment (3 EMG machines, 1 EEG machine) that generates high-margin ancillary revenue on top of clinical visits. Owned diagnostics let you capture the technical component in-house rather than referring it out, which is one of the highest-leverage margin drivers in a specialty practice.
The Florida Gulf coast location is a structural tailwind. Pasco and Hernando counties have a heavily aging population, and neurologic conditions rise sharply with age, so the referral funnel is naturally full and growing without heavy marketing spend.
The seller wants out of the business side, not necessarily the clinical side. That is the ideal setup for an operator or a group buyer: install professional management and billing while retaining provider continuity, and you capture the value the seller has been leaving on the table.

How to improve it

First, reconcile the financials before anything else. Revenue and EBITDA are both listed at $1.5M, which is not credible for a real going concern with 13 staff and three offices. Get the tax returns and payer remittance data to establish true collections, true provider comp, and true operating margin.
Audit coding and billing immediately. Solo and small neurology practices routinely under-code EMG/EEG technical components and undercharge for follow-up complexity. A coding review and a switch to a competent billing partner can lift collections 10 to 20 percent within a quarter with zero new patients.
Recruit or contract a second provider (physician, NP, or PA) to expand capacity. If the practice is bottlenecked by a single neurologist, adding a mid-level under supervision multiplies visit volume and diagnostic throughput while spreading fixed costs across three existing offices.
Tighten the diagnostic scheduling loop. With three EMG machines and an EEG machine already owned, measure utilization per machine and per site. If any device sits idle, build referring-physician relationships and internal ordering protocols to fill the calendar, since incremental diagnostic revenue is nearly all margin.
Formalize referral relationships with primary care groups, orthopedic practices, and hospitals across Pasco and Hernando. Neurology lives on inbound referrals, so a structured outreach program to feeder physicians directly grows the top line and is cheap to run.
Consolidate or optimize the three-office footprint. Two owned and one leased across two counties may be more overhead than volume justifies. Evaluate whether all three locations pull their weight, and whether the owned buildings should be bought (for control) or left with the seller as a lease.

Diligence notes

The single biggest question is what the $1.5M actually is. Confirm whether it is gross collections, revenue, or owner earnings, and pull three years of tax returns plus a monthly P&L. A listing where revenue equals EBITDA is either a data-entry error or a masked owner-comp figure, and the answer changes the valuation completely.
Understand provider dependency and licensing. If the entire practice runs on one neurologist who is the seller, you are buying a job unless you can retain them or replace them. Nail down credentialing, board certification, malpractice history, and whether payers will re-credential a new owner without a revenue gap.
Scrutinize the payer mix and reimbursement exposure. A Florida Gulf coast practice is likely Medicare-heavy, which caps pricing power and exposes you to fee schedule cuts, especially in neurology diagnostics. Get the payer-by-payer collections breakdown and any pending CPT or reimbursement changes for EMG/EEG.
Clarify the real estate structure. Two of three offices are owned and priced at $450,000 outside the asking price. Decide whether you want to buy the buildings, lease them, and at what rate, because a below-market related-party lease can quietly inflate reported profitability.
Verify the equipment condition and the 'thousands of active charts' claim. Confirm the EMG/EEG machines are current, calibrated, and not near replacement, and audit the active patient panel to see how many charts are genuinely recurring versus dormant. Patient continuity is the core asset you are paying for.

Source

Originally listed on BizBuySell. View original listing →