Southwest Houston Urgent Care & Family Practice, 13-Year Texas Clinic

$1.0M

Revenue

$501K

SDE

5.9x

Multiple

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Full Editorial Writeup

This is a 13-year-old medical clinic in southwest Houston that runs a walk-in urgent care alongside a returning family practice patient panel. The combination is the point: the family practice book smooths the seasonal and month-to-month volume swings that hammer standalone urgent care, giving the practice a base of repeat visits on top of acute walk-in demand. Diagnostics are kept in-house with on-site digital X-ray under active radiation registration, a CLIA lab, rapid testing and EKG, plus established reference lab and radiology relationships, which most clinics this size refer out and lose margin on.

The practice generates roughly $1.02M in revenue and $500,634 in owner cash flow, a healthy near 49 percent margin for a clinic. It nearly doubled its footprint to 3,114 square feet in December 2024, with a lease running to November 2029 plus a five-year option, and the equipment and fixtures convey free and clear. Staffing is six employees plus three contractors, including a full-time nurse practitioner with three years of tenure who covers clinic hours independently of the owner, meaning the clinic is not fully dependent on the selling physician for day-to-day coverage.

The owner is retiring to teach full time and will support a structured transition through the buyer's payer credentialing period. The buyer profile is clear: a physician buyer, a physician-led group adding a Houston location, or a regional operator looking to bolt on an established, licensed, cash-flowing site in a large, growing metro.

Why we like it

Earnings quality is strong for a clinic of this size, with $500,634 of cash flow on $1.02M of revenue, a margin near 49 percent that reflects in-house diagnostics capturing lab and imaging work most peers refer out. FF&E and inventory convey free and clear, so a buyer is not funding a capital catch-up on top of the price.
The dual model is a real moat. A returning family practice panel produces repeat, defensible visit volume that smooths the notorious seasonality of standalone urgent care, and the payer contracts, CLIA certificate, and Texas radiation registration are licensed assets that take time and money for a new entrant to replicate.
Healthcare demand is recession-resistant and Houston is one of the fastest-growing metros in the country. Urgent care and primary care are essential services people still pay for in a downturn, and an established southwest Houston address with 13 years of goodwill sits in front of durable, growing demand.
The operator advantage is unusually clean for a physician practice. A tenured full-time nurse practitioner already covers clinic hours independently of the owner, so a physician-led group or regional operator can absorb this site without the seller being the single point of failure on clinical coverage.

How to improve it

Audit and renegotiate payer contracts in the first 90 days. Clinics this size frequently sit on stale, below-market fee schedules, and re-credentialing under a larger group's contracts or simply pushing for updated rates can lift collections on the exact same visit volume.
Push more diagnostic and ancillary volume through the in-house X-ray, CLIA lab, and EKG rather than reference relationships. Every test performed on-site instead of referred out is captured margin, and the equipment is already owned free and clear so incremental revenue drops close to the bottom line.
Extend and formalize the family practice panel with recall and chronic-care management. Systematic recall for annual physicals, chronic disease follow-ups, and preventive visits converts one-time urgent care patients into a returning panel, deepening the recurring base that makes this asset durable.
Add occupational health and employer contracts. The southwest Houston industrial and commercial base supports drug screening, physicals, workers comp injury care, and DOT exams, which are higher-margin, contracted, and less seasonal than walk-in acute care.
Optimize scheduling and staffing against the seven-day, evening-heavy hours. Match provider coverage to actual visit density by hour and day to reduce idle labor during slow windows, protecting the near 49 percent margin as volume grows.
Invest in local digital presence and online booking. Urgent care is a search-and-click decision for most patients, so a modern site, Google presence, and online scheduling can capture walk-in demand that currently flows to national chains nearby.
Secure the lease runway early. With the term ending November 2029 and only a single five-year option at market rate, lock in renewal terms or negotiate certainty before an acquisition to protect the location goodwill that underpins the value.

Diligence notes

Verify the revenue and cash flow against payer remittances, bank deposits, and tax returns. Confirm the $500,634 cash flow is true SDE with clearly identified owner add-backs, and understand how much of collections depend on the selling physician's personal billing versus the NP and contractors.
Scrutinize provider dependence and credentialing timing. Confirm the NP's scope, contract terms, and retention post-sale, and map the buyer's own credentialing timeline with each payer, since a slow credentialing period can strand revenue during transition even with seller support.
Review payer mix and reimbursement trends. Break down commercial versus Medicare/Medicaid versus self-pay, check for concentration in any single plan, and confirm no contracts are up for renewal or rate cuts that would erode the current margin.
Confirm all licenses transfer cleanly. The CLIA certificate, Texas radiation machine registration, and payer credentialing are the assets that make this a practice rather than a shell, so verify their status, renewal dates, and transferability to the buyer's entity.
Assess the December 2024 expansion economics. The footprint nearly doubled to 3,114 square feet just before sale, so confirm that revenue and patient volume have actually grown to justify the higher rent, rather than the trailing financials reflecting a smaller pre-expansion base.
Investigate the retiring owner's referral and community relationships. A physician who is leaving to teach may take personal referral goodwill with them, so quantify how much patient flow is tied to the individual versus the location and brand.

Source

Originally listed on BizBuySell. View original listing →