A Diamond in the Rough: Established Multi-State Psych Practice

A solid investment for someone with good RCM

Discover an exceptional opportunity to acquire a highly reputable psychological testing practice established in 2015. This practice boasts consistent growth and strong profit margins, previously achieving an EBITDA of $800,000, 68.2 CAGR, and annual gross revenues exceeding seven figures. Specializing in comprehensive psychological assessments, it has cultivated a solid reputation for excellence in patient care and has long-standing relationships with major insurance providers, ensuring a steady stream of clientele and revenue.

However, to provide full transparency, the practice recently faced challenges when our biller of seven years retired in June. Since then, despite attempts with four other billers, we have a substantial amount of outstanding accounts receivable. For this reason, the new owner must bring a solid Revenue Cycle Management (RCM) solution with experience in behavioral health billing to unlock the practice's full potential and return it to profitability.

To sweeten the deal, I’m including my Profitability Booster, a strategic tool developed and awarded in my mastermind group, with the potential to generate close to $1 million in additional annual revenue after implementation. This is a diamond in the rough listing, priced at a discount, as I wish to step back while my children are young. For someone with an existing, experienced billing/RCM team, this is a rare opportunity to achieve a fantastic ROI on a well-established, seven-year business with historically strong profit margins of 20-30%. With the right care, this practice will flourish again.

Key Highlights of the Practice:

- Established Reputation: Nearly a decade of service with a strong reputation for delivering high-quality psychological assessments and personalized care.
- Strategic Locations: Three Massachusetts offices and one in Orange County, California, providing diverse patient demographics and strong demand for services.
- Proven Financial Success: Historically grosses over seven figures annually, demonstrating consistent demand and profitability.
- Insurance-Based Model: Strong relationships with major insurance providers ensure a reliable revenue stream.
- Experienced Team: Skilled clinicians and administrative staff ensure a seamless patient experience.
- Scalable Business Model: Operating as two separate S corporations, with the flexibility to combine entities for streamlined operations and enhanced profitability.

Opportunities for Growth:
This practice is primed for a buyer with the expertise and resources to implement strategic changes. Areas of potential growth include:
- Leveraging the included Profitability Booster tool to add substantial revenue.
- Resolving outstanding accounts receivable through improved RCM practices.
- Expanding into complementary services like psychiatry, therapy, or addiction treatment.

Why This Opportunity Stands Out:
- A rare chance to acquire a practice with a seven-year track record of success.
- A discounted price reflects the owner’s desire to step back, offering significant upside for a well-prepared buyer.
- Strong foundations in place for someone with the right team and vision to restore profitability and drive future growth.

The existing owner is committed to providing a transitional support period, ensuring a smooth handover of operations and relationships. Whether you’re a solo practitioner looking to expand, an investor seeking a high-growth opportunity, or a larger organization aiming to complement existing services, this practice offers a unique, scalable, and highly rewarding investment.

Don’t miss this chance to acquire a thriving psychological testing practice with untapped potential.