SOLD: Tech-1510: Clinical Diagnostic Lab in Central Philadelphia

SOLD Tech-1510:Clinical Diagnostic Lab in Central Philadelphia

One Year Old, CLIA-Approved, Ideal Turn-key Business Opportunity for a Large Physician’s Group

Disclaimer: Technologypark has not independently verified any of the information in these descriptions, and makes no warranty as to their accuracies or completeness. It is also recommended that the buyer consult with an experienced healthcare attorney experienced in regulations governing the operations of clinical labs.

Turn-key Opportunity – CLIA-approved Clinical Lab

This lab is ideal for a large physicians group within about 100 miles of Philadelphia (including areas of NJ and Pennsylvania). Also ideal for any diagnostic company to offer testing of its products to customers. Or for businesses or entrepreneurs wanting to enter this lucrative field. Only $225K buys this lab, complete with CLIA certification, Medicare / Medicaid insurance acceptance, and all equipment paid for. It is a turnkey running lab with significant immediate profit potential (for a large practice).

The lab provides wide range of testing, including:

  • Hematology
  • Chemistry Testing
  • Immunology Testing
  • Drug testing
  • Urinalysis services

The lab has all the required permits and has recently passed inspection. The
equipment itself is worth $150,000 and comes turn-key with a staff of four, running
operation, optimum, functioning equipment under service contracts, and complete
secure website for patient results and lab management.

Background and Business Opportunity

Mid and large size physician groups frequently establish in-house laboratory services
to meet the internal needs. Reasons for doing this include:

 Total control over the quality and process of laboratory testing
 Significant source of additional income
 Augmentation of infrastructure for research

However, setting up a lab, equipping it with infrastructure and
right equipment, getting all the regulatory approvals is time
consuming and requires significant upfront investment.
Nationally, it may take roughly 1 year to obtain regulatory
approvals (CLIA), which could mean a loss of up to 1 million
dollar in potential revenue.

A typical small physician’s office will order roughly $50-100K worth of tests from
outside. To break even, this opportunity needs to have over $250K worth of test
volume annually, and hence is better suited for larger practices and particularly for
groups having multiple locations. If a physician’s group does at least 80+ tests per
day, then this opportunity could be attractive, because the lab as an Physican’s
Office Lab (POL) can be profitable with its own internal needs.
Alternatively, this lab can also be run as a clinical lab servicing physicians and
diagnostic companies.

The lab can easily handle 200 samples / day with current equipment and can easily
be scaled up to meet higher demand.

Purchasing Opportunity

This turn-key lab is available for US$350K. The lab is currently running with a staff of
four – Medical Director, Technician, Consultant and a Driver. All are part time.
Buying existing, turn-key lab versus setting it up will be a huge benefit for any
potential buyer thinking of having such a lab – both, from the point of view of time
and also money spent on buying equipment, personnel time and lost income in the
time it takes to set up such a lab and obtain regulatory approvals (~9-15 months).

Facility and Equipment

The lab is housed in a 1,200 sq feet of leased space in a
professional building in Philadelphia with a rent of ~$1,000 per
month plus utilities.   The lab is equipped with equipment worth about $150K. All of
the equipment is in working order and under maintenance
contracts. Major equipment are as follows:

 Vitros 350 (for Chemistry)
 Beckman Coulter ACT5 Diff AutoLoader (for Hematology)
 MINI VIDAS (Special Chemistry)
 Beckman Access (Special Chemistry)
 Siemens Clinitek Status (Urinalysis)
 Stago St Art 4 (Coagulation)
 Labsoft LABNET (Lab Management)
 Velocity (Management Interface and Website server software)
 Miscellaneous (Lab and office furniture, safety showers, microscopes, pcs,
fire safety, ventilation, etc.)


The lab has a staff of four people – Medical Director, Technician, Consultant and a
Driver. All are part time.

Financial Highlights

 Potential Revenue* – potential of up to $3 million per year
 Potential Net Profit* – potential of up to ~$1 million per year
 Asking Price – $350K
 Monthly Volume Capacity – ~200 tests per day with current equipment
(scalable to several times this volume
 Assets –150 K in equipment, facility improvements and build-out
 Reason for Selling / Partnership – Marketing Partner left to pursue
other opportunities
Note on Financials – The lab is only 1 year old and has all of the permits to run the
business and does have clients. However the client may or may not continue with new
owners. Ideally the new owners will have enough internal volume initially to make the
lab profitable and can then also solicit outside business. Because one of the two
partners (who was in charge of marketing) has left, the lab is looking to either sell
itself or preferably partner with a large physicians’ group.

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