Home » Businesses » SBA Pre-Qualified Medical Billing Agency | 16 Years in Business | All Recurring Revenue | Physical, Occupational & Speech Therapy Practices | 80+ Clients | 57% Net Margins | Full Team in Place
SBA Pre-Qualified Medical Billing Agency | 16 Years in Business | All Recurring Revenue | Physical, Occupational & Speech Therapy Practices | 80+ Clients | 57% Net Margins | Full Team in Place
Website Closers® presents a flourishing company that has been in business for 16 strong years, providing Medical Billing Services to a growing number of clients with physical, occupational, and speech therapy practices. They currently have over 80 clients with all of their sales based on recurring revenue, and a 92% Customer Retention Rate.
There is a full team in place including an Operations Manager, an Office Manager, and 13 highly trained and knowledgeable billing specialists. The firm offers a full-service solution, that is customizable per client, for medical billing. Currently, they exclusively service Physical, Occupational, and Speech Therapy practices, but there is no reason why additional medical specialists can’t be added. The services are complete with consultations on business startups, credentialing of providers and private practice startups, benefit verifications, claims submissions, electronic payments (which go directly to the provider), posting of payments from both insurance and patients, and patient statements. Special projects, customized reports, and 100% customer satisfaction are the focus for this team.
The company has already gone through a rigorous vetting process with our lending partners, achieving SBA Pre-Qualification. This is exciting for qualified buyers because they can purchase this amazing business for as little as 10% down with the balance of the senior loan amortized over an entire decade … all at attractive interest rates.
The business does not currently spend money on advertising or marketing, instead focusing on client satisfaction, which results in a tremendous amount of word-of-mouth testimonials and referrals. 100% percent of the company’s revenue is recurring.
In the U.S., the Medical Billing Industry is thriving, valued at nearly $8 billion and growing by 9.52%. Within such a profitable field, this company’s track record and brand recognition have enabled them to enjoy 57% Net Profit Margins as the healthcare field continues to evolve and grow. The company has become known for being the best at what they do, and the business also has distinguished itself by accepting contracts from medium-sized practices or startups. Because of that, the company often gets referrals from larger billing agencies that don’t manage smaller accounts.
Their services are in increasingly high demand. The company’s average client practice will have between 50 to 100+ medical visits a day. This practices need accurate and timely billing to their insurers. This company has a trusted reputation for its expertise, accuracy, and commitment to customer service
Business Broker Takeaway
Our analysis of this business revealed several key value propositions for a buyer looking for an online company operating profitably in an evergreen and high-demand vertical, and one with low competition and the ability to scale quickly. We anticipate buyers will recognize that value for 3 important reasons:
Growing Client Base. This company has succeeded in attracting a diverse client base, companies of different sizes that are operating in multiple verticals and located across the nation. A buyer doesn’t need to focus the business on a specific geographic location. Their clients range from entrepreneurs opening their first practice right out of college, to veteran therapists. The company also services clinics that host multiple therapy providers.
Multiple Services. As a niche business, this company provides a host of specialized services that provide solutions to their clients’ needs as their practices grow. These are customized services specifically designed to meet the needs of each client, and the company offers different practice management programs based on each client’s specialty. Additional services include benefit verifications, claims submissions, and managing electronic payments. For some clients, they maintain huge savings by employing this agency.
Growth Opportunities: Having grown without a dedicated advertising budget, this
company could scale rapidly by investing in proven digital marketing tools. That would include running PPC ads on Google, expanding their SEO program to include a blog on their website, expanding their email marketing campaign, and launching a more active and aggressive social media marketing campaign. The company could also hire a sales team to represent the company at industry trade shows and to target additional and new practices as prospective clients.
The Company
Launched 16 years ago, the company was able to quickly establish itself as a full-service, niche, and customizable medical billing service operating exclusively for physical, occupational, and speech therapy practices. Pricing has been determined by the size of the clinic they service, with a $500 minimum monthly fee for any startups until their business generates higher revenue.
The need for their services has become obvious: the company continues to attract new clients and sales are not impacted by any seasonal factors. In a market where new practices are opening up regularly, the company does not compete against larger billing agencies and has provided a far more economical option to its client base.
Contracts are billed monthly, and they maintain a very low rate of client turnover, most often because clients opted to do their billing in-house rather than shift to another service provider.
Operations and Marketing
The company’s reputation has grown considerably, thanks to its clients, who provide them with glowing testimonials that help introduce their work to new practices. The company has a contact form on its website, and to direct people to the site, they have an SEO program using keywords popular in this vertical which keep them ranking high for organic searches related to physical therapy billing.
The company has also used email blasts to draw new clients.
Most of the company’s daily functions are handled by an experienced team that includes an operations manager, office manager, and 13 billing specialists, all full-time positions. The staff is experienced and knowledgeable and handles day-to-day operations with professionalism and a commitment to customer service.
As a specialized and well-regarded company in the therapy billing community, the buyer of this business inherits their strong reputation, their experienced team, their recurring revenues, and a growing client base. With plenty of available options for scaling the company, the new owner can rest assured that the field of medical billing services is certain to continue growing as the demand for therapy services does the same.
