South Florida Family Practice & Urgent Care, Hallandale FL

$1.2M

Revenue

$665K

SDE

1.9x

Multiple

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Full Editorial Writeup

This is a primary care and family medicine practice with an urgent care component located in Hallandale, Florida, a dense and growing South Florida market. The practice generates roughly $1.21M in annual revenue and $665K in reported cash flow, giving it a cash flow margin north of 54 percent, which is strong even by medical practice standards and suggests a lean cost structure and healthy payer mix.

Primary care paired with urgent care is one of the stickiest service lines in healthcare. Patients return for chronic disease management, annual physicals, and routine acute visits, and once a patient panel is established the demand is steady and non-cyclical. The urgent care add-on captures walk-in volume and higher-margin acute visits that would otherwise go to competitors or emergency rooms.

At a 1.95x cash flow multiple, this is priced well below typical healthcare practice comps, which often trade at 3x to 5x SDE for stable panels. That discount is either a genuine opportunity or a signal of concentration risk, provider dependence, or payer issues, and the gap between price and comp is the single most important thing to diligence.

Why we like it

Earnings quality is the headline here. The practice throws off $665K of cash flow on $1.21M of revenue, a margin above 54 percent, which is exceptional for a service business and points to a favorable payer mix and tight overhead. Margins like this in healthcare usually mean the provider economics are working, not just the top line.
Primary care with a returning patient panel is about as durable as small-business cash flow gets. People need physicals, prescription refills, and chronic care management in every economic environment, and switching doctors has real friction that keeps patients loyal. The urgent care component layers on walk-in volume that is non-discretionary and recurring by nature.
South Florida demographics are a structural tailwind. Hallandale and the surrounding Broward and Miami-Dade corridor have a large and aging population with high healthcare utilization, which supports steady patient demand and reimbursement volume for years to come.
The 1.95x cash flow multiple is well below the 3x to 5x that stable medical practices typically command. If the earnings and patient panel hold up under diligence, the buyer is capturing durable, recession-resistant cash flow at a discount to the category, which is where real returns come from.

How to improve it

Audit and optimize the payer mix within the first 90 days. Identify the share of Medicare, commercial, and self-pay patients, and renegotiate or shift toward higher-reimbursing contracts where possible. Even small improvements in average reimbursement per visit compound directly into cash flow given the margin structure.
Expand provider capacity to lift throughput. If a single physician is the bottleneck, adding a nurse practitioner or physician assistant can increase visit volume at a fraction of the cost of an MD, widening margins while reducing dependence on any one provider. This also de-risks the practice for the buyer.
Push the urgent care line harder with local marketing and extended hours. Urgent care captures higher-margin acute visits and walk-in volume, and many patients default to the ER for lack of awareness. Targeted local SEO, signage, and Google Business optimization can redirect that volume affordably.
Build recurring revenue through chronic care management and annual wellness programs. Medicare reimburses for CCM and remote patient monitoring, which turns existing chronic patients into predictable monthly revenue. This formalizes the recurring nature of the panel and smooths cash flow.
Systematize scheduling and billing to reduce no-shows and claim denials. Implement automated reminders and a denial-management workflow to recover revenue that leaks through missed appointments and rejected claims. Billing efficiency in a high-margin practice falls almost entirely to the bottom line.
Formalize patient retention and referral loops. Set up post-visit follow-up, recall reminders for physicals, and a referral incentive for existing patients. A primary care panel compounds in value when retention and new-patient acquisition both run smoothly.

Diligence notes

The gap between the 1.95x asking multiple and typical 3x to 5x healthcare comps is the first thing to explain. Ask directly why it is priced to move: provider dependence, pending payer changes, a retiring or departing physician, or declining visit volume are all possibilities that would justify the discount.
Verify provider credentialing and the transition plan. If the practice runs on one physician's NPI and payer contracts, the buyer needs to confirm those relationships transfer and that a credentialed provider stays or is recruited before close. Patient panels evaporate fast without a physician in the chair.
Reconstruct the payer mix and reimbursement trends over the past three years. Confirm whether the 54 percent cash flow margin is sustainable or inflated by a temporary payer arrangement, one-time billing, or deferred expenses. Pull the actual EOBs and billing reports, not just a seller summary.
Confirm patient panel size, visit volume, and retention. Request appointment logs and active-patient counts to validate that the $1.21M revenue reflects a stable, returning base rather than a one-time surge. Check how much revenue is concentrated in a small number of high-utilization patients.
Review the lease, location terms, and any regulatory or compliance exposure. Hallandale is leased space, so confirm lease length, renewal options, and rent escalations, plus any open HIPAA, OSHA, or malpractice issues that could follow the buyer.

Source

Originally listed on DealStream. View original listing →