Anyone have any experience or know anything about sleep and wellness centers?

June 14, 2025

by a searcher from Biola University in North Tustin, CA, USA

Interested in a listing for a sleep and wellness center in SoCal. I know is heavy on insurance billing and doctor referrals, but anything else I should look for or consider?

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Reply by a searcher
from Rockhurst University in Danville, CA, USA

If insurance based, you'll need to look at each insurer's contract to see if it transfers to the new owner or not. If not, you'll need those in place before you start billing as the new owner. Something to keep in mind because getting those contracts can take months and you may not be able to bill for any services you provide during that time. Another concern with insurance based medical practices is the issue of clawbacks, which can happen years after the claims were paid. This is important if the acquisition is via stock sale. You might want to hold some amount of payment in escrow for 2-3 years to be used to pay for clawbacks if they happen. Lots more to look out for when purchasing a medical business. Happy to chat more if you need.

Reply by a lender
from University of Missouri in Denver, CO, USA

Few things. Understand how the business makes money - insurance, private pay, or both. If insurance, check reimbursement rates. Check for any licenses needed including staff licenses, if needed. Potentially need to look into the condition of the equipment.

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