Solid Platform for Growth – Completely Managed Lab – Very Little Owner Involvement
Established in 2018, this Lab provides state-of-the-art toxicology testing. The confirmatory tests for clinicians help prescription management and improve quality measures and clinical care for their clients. The Lab Director is an experienced anatomical and clinical pathologist who supervises the lab and enables it to deliver the most accurate results. The Lab offers a variety of Tox screens and smoothly collaborates with physicians’ offices.
This Lab is a turnkey lab. The owners do not have a background in running the lab. Therefore, they have hired a management company that manages the Lab’s operations and a billing company that provides the billing services and manages insurance relationships.
Currently, the Lab services two clinics and gets between 200-300 samples per month, making a reasonable profit. However, recently these clinics have informed the Lab that they will soon be setting up their own Physician Office Labs (POLs) and will no longer send their samples. Therefore the Lab is being supplied without the business.
The lab has several types of equipment that are still paid off and in good running condition. The owners are absentee owners with other professional businesses (both are veterinarians and busy with their profession/business with little time for growing the lab business). Therefore, they want to sell the business and focus on their core competencies.
The business is suitable for someone with experience in sales and marketing and general management skills. Having medical marketing experience and contacts with physicians would be a big plus. If one starts such a lab from scratch, it would be easily a year or more by the time one is ready to accept payments. Setting up a lab would entail finding space, building it out with lab benches, plumbing, and hoods, hiring staff, getting equipment, getting them validated, obtaining CLIA certifications, and getting Medicare so one can start accepting payments. In contrast, this lab is set up and running, has some business, and is profitable. The buyer can therefore focus on expanding the lab business and services.
This lab is ideal for a buyer capable of bringing new clients to grow its revenue. There are multiple avenues for growth. One should certainly focus on getting more toxicology clients from pain management doctors and larger companies for drug testing of new employees in Monroe and Georgia. But equally important, one can also bring in COVID testing as well as several other PCR tests that would use the same equipment as used in COVID PCR testing. These tests include pulmonary tests (including asthma testing), Urinary Tract Infections (UTI) testing, and Women’s testing (various infections). These tests get excellent reimbursements (~$250 to $700 per test), much more than routine blood tests. Moreover, they use the same PCR equipment used in the COVID test. Once the PCR equipment is procured, the lab management company can validate PCR equipment in a few weeks for the various uses of the equipment and get these additional tests added to CLIA certification.
So in many ways, this lab is ideal for a business person who may not have any experience in running the lab but has good marketing skills and/or good medical contacts to get clients. The backend work of running the lab and billing would be taken care of by the management company and the billing company, respectively. A buyer well-experienced in running the lab can certainly take over management of the lab once the current contract expires (it is an annual contract).
The Lab is fairly new, and has used professional companies for management, compliance, and billing services. The Lab is owned by absentee professional owners and has done a minimal amount of billing so far. Therefore the buyer will get a Lab with a clean record.
FEATURES OF THE LAB
- – No technical knowledge is required. Anyone with some experience in Medical Sales and Marketing can run the lab
- – Turnkey Lab – comes with Staff, Lab Management, Billing Company, and Medicare. It saves one year from starting from scratch
- – Very good Growth prospects – with some marketing and some medical marketing experience
- – Located in a nice location with a Professional and Medical complex and with a large Behavioral Correction Center nearby
- – Optionally, the Real Estate is also available if desired
- – Priced to Sell
The asking price of the lab is a very modest $300K. Comes debt-free. Also, please note that this lab does not come with any business. The buyer has to bring his/her own business and grow it.
Unlike many other lab opportunities, here, not only buyer is buying a turn-key running lab, but it is also saving at least a year from starting it from scratch. For someone to start the lab, set up the equipment, and get CLIA and Medicare would easily cost more than a year and significantly more money. Another advantage of this lab is that a third party manages it, and an outside party also does the billing. These are the most technical parts of running a clinical lab. Therefore, anyone can run it as long as they focus on essential management and marketing. The current owners were essentially not spending much time on the business, and the lab was running by itself and was profitable. As discussed earlier, the lab growth potential by easily adding Covid and other molecular tests.
Note: When inquiring about the lab, please email from your business address, and provide some details about your background, your company, and your ability to buy this lab.