Family Medicine Clinic, Snohomish County WA

$800K

Revenue

$541K

SDE

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Full Editorial Writeup

This is a family medicine clinic located in Snohomish County, north of Seattle, generating annual collections north of $800,000 with what the listing describes as low overhead. The standout number is the cash flow: $540,970 on roughly $800,000 in collections implies an owner earnings margin well above 60 percent, which is exceptional for a primary care practice and speaks to a lean cost structure and an efficient owner-provider.

The clinic sits in a shopping complex within a high-traffic commercial corridor, which drives visibility and walk-in access in a densely populated, high-income part of the Puget Sound region. The practice is actively growing, adding over 20 new patients per month, meaning the patient panel is expanding rather than aging out. That new-patient velocity matters because it offsets natural attrition and supports future revenue without heavy marketing spend.

For a buyer, this is a recession-resistant, essential-services business with a returning patient panel and predictable recurring visit revenue. The gating question is the seller's clinical role: a family medicine practice this profitable on this collections base is almost certainly driven by an owner-physician, so continuity of provider capacity is the whole ballgame.

Why we like it

Earnings quality is the headline: $540,970 of cash flow on roughly $800,000 in collections is a margin north of 60 percent, which is remarkable for primary care. That level of profitability points to genuinely low overhead and disciplined operations rather than accounting noise, though it needs verification against the provider comp add-back.
Durability is strong because family medicine is a bedrock essential service that patients use in good times and bad. The returning patient panel creates de facto recurring revenue through annual visits, chronic care management, and insurance reimbursements that do not evaporate in a downturn.
Market tailwinds are favorable: Snohomish County north of Seattle is growing in population and income, and primary care access remains constrained across the country. Adding over 20 new patients a month shows the demand is real and the panel is expanding, not contracting.
The operator advantage is clear for a physician or physician-backed group buyer. A high-traffic retail location plus steady new-patient flow means a capable incoming provider can plug into an already-humming machine and immediately layer in ancillary services and additional provider hours.

How to improve it

Add mid-level providers such as a nurse practitioner or physician assistant to expand appointment capacity without adding a second physician salary. With 20-plus new patients arriving monthly, the constraint is likely provider hours, and a PA or NP unlocks more billable visits at attractive margins.
Layer in ancillary and recurring revenue streams like chronic care management billing, annual wellness visits, in-house labs, and remote patient monitoring. These are reimbursable services that leverage the existing panel and lift revenue per patient without proportional cost increases.
Optimize payer mix and coding to capture higher reimbursement for the same visits. A coding and documentation audit often finds under-coded encounters, and renegotiating commercial contracts on the back of visit volume can meaningfully raise collections.
Build a membership or direct primary care tier to convert episodic patients into predictable monthly recurring revenue. A DPC or concierge layer smooths cash flow and reduces reliance on insurance reimbursement timing.
Formalize the growth engine that is already producing new patients. Understand whether it is the retail location, referrals, or online reviews, then invest deliberately in local SEO, Google Business optimization, and referral relationships to accelerate panel growth.
Extend hours or add urgent-care-style same-day access to capture the walk-in demand implied by the high-traffic shopping complex location. Convenience-driven visits are high-margin and reinforce patient retention.

Diligence notes

Nail down the owner-physician's clinical role and how much of the $540,970 cash flow depends on their personal production. If the seller is the primary revenue-generating provider, model the cost of replacement provider comp and the impact on true post-acquisition earnings before believing the margin.
Verify collections versus billings and the payer mix. Confirm the $800,000-plus is actual collected revenue, review the accounts receivable aging, and understand the split between commercial, Medicare, Medicaid, and self-pay because reimbursement rates drive everything.
Confirm patient panel size, retention, and the durability of the 20-plus new patients per month. Pull historical panel data to see if the panel is genuinely growing net of attrition and whether new-patient flow is a stable feature or a recent spike.
Investigate the lease on the shopping complex space, since location is central to the walk-in traffic thesis. Review remaining term, renewal options, rent escalations, and whether the lease transfers cleanly to a buyer.
Review credentialing, licensing, and payer contracts for transferability. Insurance panel participation and provider credentialing can take months to re-establish, so understand what carries over and what a new owner must re-apply for.
Assess malpractice history, compliance, and any pending liabilities. Request the malpractice claims history, HIPAA and billing compliance posture, and confirm there are no regulatory or audit exposures that follow the practice.

Source

Originally listed on BizBuySell. View original listing →