Main road, shop front, level access, consisting, of five consulting rooms, treatment room, pathology room, large waiting room, and receptionist area, staff room and toilets. Pathology agreement; a new contract will be issued next week reflecting an annual rental income of $83K. A total area of approx. 200sqm. Significant free parking, behind the medical centre in a communal shopping car park providing rear entrance to the medical centre as well. Modern spacious set up with rooms well set up, having sinks are fully furnished, equipped and air conditioned. Medical practice is accredited under AGPAL until the 13 November 2020.
The medical centre premises are not owned by the principal. The landlord has just renewed the current lease for a further 3 years. Lease further grants two further 3 year options, conditional upon the current term ending on 31 December 2021. Then offering 2(two) x 3 year options which would then run from 1 January 2022 to 31 December 2024 and 1 January 2025 to 31 December 2027. This provides a 9 year security of tenure to Ozemed M C, at the present site.
Current doctors (GPs) profile is as follows:
- Dr SS – FRACGP – 70% of billings. Commenced 1 July 2016. Contracted until 30 June 2019. Very content at the practice, and has indicated that he will continue well beyond the contract period. Male, approx. age; 50
- Dr. DK – FRACGP – 75% of all billings. Commenced 8 Oct 2016. Contract to 19 March 2021. Very content at the practice, and has indicated that he will continue well beyond the contract period. Has also indicated that he will sign an extension on the current contract.
- Dr. GM – FRACGP – $130 hourly rate. Commenced July 2009. Not contracted. Has indicated that he will continue indefinitely, also very content at practice. Male, approx. age 55
ALLIED HEALTH:
- Psychologist; SB- not charged any rental fees as she refers a significant number of mental health patients for Care Plans and follow-up reviews.
- Dietitian; Optimum Health; they receive $14.56 for every patient that she consults. She consults once every 2 weeks, and they receive, on average, approximately $230 every fortnight.
- Audiologist; Hearing Life; Audiologist comes once a week, and they receive $100 + GST every week.
Note: The above allied health services are nor specifically at Ozemed MC to increase revenue but rather as a service to practice patients, in house, and a good source of further referral to their GPs for additional work and follow up.
STAFFING: 5x cas & one P/T admin plus 1x FT PM plus 2 P/T RNs (1x FTE)
MEDICAL CENTRE HOURS: Monday – Friday (8.30am – 6pm) & Sat (8.30 am – 2pm).
ACTIVE PT No#/INFORMATION: 21,526 pts or an average of 414 pt/wk. Pt records are fully computerized using BP
WORK DONE/SERVICES PROVIDED: GP’s practice, broad based general practice seeing elderly to children.
Note: The practice doctors do not have any hospital or nursing home patients.
FEE STRUCTURE: The medical practice is essentially fully Bulk Billing.
ANNUAL GROSS GP FEES, OTHER INCOME AND TOTAL REVENUE:
- 2018 – $1, 242,403 + PIP, PNIP was $77,815 + Pathology rent was $83,000
- 2017 – $1,246,000 + PIP, PNIP, was $76,439
- 2016 – $1,149,000 + PIP, PNIP was $68,648
The sales price for this medical centre is $550,000 (all inclusive of Goodwill, P&E + Stock)
The asking price reflects the meticulous homework and management undertaken for the expansion of this highly potential practice which would easily cross the estimated gross billings of $2 million once additional l doctors have been taken on-board. The price also reflects the added advantages of this practice and the highly sought after location which include but are not limited to the following established factors for this booming business:
- – Huge potential to expand with 5C.R. (5FTE would give you annual GP billing in excess of $2.0M).
- – Excellent exposure, history and main road location with established cash flow.
- – Already accredited, fully computerized, so no costs and effort in doing this.
- – Scope to introduce a GP Training practice to attract further GPs and increase staff and practice prestige.
- – Easier to recruit G.P.s for DWS area; in close proximity to Sydney.
It would take more than the asking price to establish, fit out and equip a medical centre of this quality and size and find the GPs and staff (Current costs to fit out an empty premises would be in the range of are $1100 – $1800/sq. mt).
- Close location to Nepean hospital which is the main and tertiary hospital of the Penrith region.
- Multiple new housing schemes around Penrith have been completed including the new Highways/motorways. All this huge developments have resulted in the increased the population of the region with the increased demand for GPs.
- Newly built nursing homes have been repeatedly asking the practice to take over the nursing home residents as their pts, which are income producing services not done at the moment.
- Huge potential for expansion of practice hrs, more pts, higher gross billings & resulting profits.
All appointment to meet and inspect the premises need to be done out of hours.
PS: up until 31 December 2015, the business acted as a collection agency of Medicare fees for the doctors. Upon advice from Raymond’s accountant, they decided that we should not classify the fees received from Medicare on behalf of the doctors as its own GST-free income. So, from the 1 January 2016 the business charged management fees to the doctors (at the previously agreed rate with the doctors plus GST), of their respective portion of fees received from Medicare. The net amount (i.e. fees received from Medicare less management fee charged) was then paid to the doctors.
As a result of this, you will notice in the 2016 P/L, that the fees received have reduced from the 2015 year, but this is a result of the above, where there is now a management fee income of $117,864, which in effect equates to Fees received of $392,880 (based upon 30% management fee).
Also, please note, for the 2x doctor that are paid a percentage, this new arrangement applies, however, for Dr GM who they pay an hourly fee, all of the fees are recovered into the business as per the previous arrangement.
To enquire on this business visit www.linkbusiness.com.au/NSW06101 and click on "enquire now"
Ref# NSW06101
Sally Stuart
Business Sales Specialist
Phone: +61 2 9899 1999
Mobile: +61 437 082 045
Email: [email protected]
THE PURCHASER TO MAKE HIS/HER OWN INVESTIGATIONS AND ENQUIRIES IN RELATION TO THE BUSINESS AND NOT TO RELY UPON WARRANTY OR STATEMENT MADE BY THE VENDOR OR BY ANYONE ON HIS/HER BEHALF
