Medical Screening for Prison Inmates, with Contracts

Business Description

For sale is a 20-year-old single-physician traveling medical practice providing specialized screenings and consultations to inmates in two states. The business has two major contracts: one with State 1 (auto-renews with no expiration), and one just signed with State 2. For State 1 on average, the medical procedures (endoscopies/colonoscopies) are $2,000 per case and consultations are 135% of medicare per case ($242.85 per case for State 1, maybe 1 per month). Each location is visited monthly or bi-monthly in State 1. The addition of State 2 is expected to add 125-150 cases per month, starting around Spring 2025. The owner has hired a full staff and physician to service that state (physician is locum tenens, meaning paid as-needed).

Physicians are paid $250-300 per case. The seller is open to keeping some minority equity and will continue servicing the cases at $300 per case in State 1. He is looking to sell the business in order to pay off debt from a different business that he recently shut down. The owner has built and sold a similar endoscopy business years ago in California, so this would be his second exit. He is also in advanced talks with a third state, and pushing for more states and federal prisons.