Urgent Care & Preventive Care Clinic, Central California

$2.5M

Revenue

$861K

SDE

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Full Editorial Writeup

This is a single-location outpatient clinic in Central California delivering walk-in urgent care, occupational health, and routine preventive services. The clinic runs a high-throughput model, seeing roughly 40 to 50 patients per day with limited administrative friction, and has built a patient database of about 56,000 individuals, of which roughly 20,000 are active or repeat patients. The business does in-house fracture care, wound treatment, and other procedures that keep patients from being referred out, which improves both margins and reputation.

The economics here are the story. On $2.5M of revenue the clinic throws off $861K of EBITDA, a 34% margin, and management notes historical margins ranging from 30% to 44%. About 80% of revenue comes from repeat visits, and the practice generates ongoing referral activity with no formal marketing spend, which points to genuine community goodwill built over decades of operation.

Urgent care is one of the more durable corners of healthcare because it captures demand that would otherwise clog emergency rooms or wait weeks for a primary care appointment. Occupational health adds a B2B revenue layer through employer contracts for pre-employment screening, injury care, and drug testing, which tends to be sticky and less price-sensitive than consumer visits. The combination of essential-service demand, high margins, and a large existing patient base makes this a classic boring-but-durable cash flow asset.

Why we like it

Earnings quality is excellent for a single clinic: $861K EBITDA on $2.5M revenue is a 34% margin, and management cites a historical range of 30% to 44%. Roughly 80% of revenue comes from repeat visits, so this is not lumpy project revenue but a recurring stream of everyday medical demand.
The moat is reputation plus a captive patient base. With 56,000 patients in the database and about 20,000 active, plus decades of community presence driving referrals with zero formal marketing, a buyer inherits a demand engine that is expensive and slow for a new entrant to replicate.
Urgent care and occupational health sit in the recession-resistant part of healthcare. People break bones, get sick, and need employer-mandated screenings regardless of the economy, and urgent care specifically absorbs demand deflecting from overloaded ERs and backlogged primary care.
Operator advantage is real here because the current model runs on a single location with no marketing spend. A hands-on buyer can add extended hours, a second location, and payer contract optimization, meaning most of the upside is untapped rather than already priced in.

How to improve it

Audit and renegotiate the payer mix within the first 90 days. Urgent care margins live or die on reimbursement rates, so pull the top commercial contracts, benchmark them against regional averages, and identify where the clinic is underpaid relative to CPT volume.
Build out the occupational health book aggressively. Direct employer contracts for pre-employment physicals, drug screening, and workers comp injury care are higher-margin, more predictable, and less payer-dependent than walk-in traffic, and a dedicated B2B salesperson can compound this line.
Turn on marketing, since the business currently spends nothing. Even a modest program of local SEO, Google Business optimization, and geo-targeted ads against the existing 40 to 50 daily visits could lift throughput materially given the fixed-cost clinical infrastructure already in place.
Add ancillary revenue streams that fit the existing patient flow. On-site lab work, imaging, telehealth follow-ups, and vaccine or wellness programs capture dollars currently referred out, improving revenue per visit without adding new patient acquisition cost.
Extend operating hours and evaluate weekend coverage. Urgent care demand peaks evenings and weekends when primary care is closed, so mapping visit patterns against staffing could unlock capacity the clinic is currently leaving on the table.
Systematize provider recruiting and retention before any second-location move. The single biggest constraint to scaling urgent care is clinician supply, so lock in a repeatable hiring pipeline and physician compensation structure while the seller is still available to introduce candidates.

Diligence notes

Confirm the physician ownership and licensing structure, because California prohibits the corporate practice of medicine. A non-physician buyer will likely need a management services organization arrangement with a professional corporation, and the deal structure has to be built around that from day one.
Get the payer mix breakdown and reimbursement trends. Understand what percentage is commercial versus Medicare, Medicaid, and workers comp, and how rates have moved over the past three years, since a shift toward lower-reimbursement government payers can quietly erode the 34% margin.
Verify how much of the EBITDA depends on the current physician owner treating patients. If the owner is generating a large share of the clinical revenue personally, the true adjusted earnings after hiring a replacement provider will be lower than the stated $861K.
Pressure-test the patient counts and repeat-visit claim. Ask for the actual visit logs behind the 40 to 50 patients per day and the 80% repeat revenue figure, and confirm the 20,000 active patients are genuinely recurring rather than a database of anyone who ever walked in.
Clarify the real estate and lease situation. The asking price excludes real estate, so review the lease term, renewal options, and rent, because a single-location clinic with a short or below-market lease carries meaningful relocation and cost risk.
Request the reason for sale and any seller transition terms, which are not disclosed. Given the value tied to the owner's reputation and referral relationships, a meaningful transition period and non-compete are essential to protect the goodwill you are paying for.

Source

Originally listed on BizBuySell. View original listing →