Contact: Ralph Santos At 818-731-7173 Cell , 888-736-2911 - Also Email This Contact Below
Asking Price: $350,000 Down Payment: $350,000
Annual SDC: Call / Email
Annual Gross: Call / Email
Attributes: Broker-Broker Coop, Home Based, Absentee Run, Training & Support, Relocatable
This Congregate Health Living Facility (CHLF) is literally turnkey business that would include you're A and C licenses, all of the build-outs necessary to operate such a facility, the required policies and procedures manuals, the basic FFE required for a CHLF, and a seller that is very knowledgeable in the industry that can help you understand the mechanics of a CHLF. This specific business literally only needs that you activate the required services (e.g. vendors, utilities) and that you update your facility-related supplies (e.g. linen) and thereafter begin admitting your patients.
This 6 Bed CHLF began in January 2015 in the Riverside County area in a 2,432 square feet single-story home. There are 4 total rooms: two private rooms and two semi-private rooms in the facility. The home itself was built in 2006 and it is in a very good condition. The facility is ADA compliant with fire sprinklers in place, generator in place, a fire door in place and much more. A must-see for any interested CHLF buyer!
Currently, the facility is not operational with no staff and with no patients being admitted. The motivation for the sale is that the seller has other business ventures, outside of the area, which does not allow for him to market and run the day to day operations of the CHLF. The CHLF comes with contracted managed care and HMOs contracts.
The CLHF (the business portion of the transaction) will be sold at $350,000.00. On average, it would take you 3 years to obtain your licenses as well as an average cost of +/- $100,000.00 to rehab a home to fit the requirements of a licensed CHLF. Furthermore, the initial investment also includes 3 years of rental expense, approximately, $63,000.00. The seller has made a significant time and monetary investment on their CHLF.
The Real Estate (the land and the facility) will not be part of the sale. The monthly lease is currently at approximately $1750.00 per month on a 5-year lease with a 4-year option. The current landlord has a good relationship with the seller of the business and we expect no significant issues with the creation of a new lease agreement.
The facility just completed its most recent survey in August 2019 with no issues reported. Its NPI is intact along with its CDPH License. The Corporation standing is good with the Secretary of State and with the Franchise Tax Board. All corporate and compliance information would need to verified via the buyer's due diligence.
Congregate Living Health Facilities (CLHFs) are defined in H&S Code, Section 1250(i) (1), as a residential home with a capacity of no more than six beds, which provides inpatient care, including the following basic services: medical supervision, 24-hour skilled nursing and supportive care, pharmacy, dietary, social recreational, and at least one type of service specified in paragraph (2). The primary need of CLHF residents shall be for availability of skilled nursing care on a recurring, intermittent, extended, or continuous basis. The care is generally less intense than that provided in general acute care hospitals but more intense than that provided in skilled nursing facilities. http://publichealth.lacounty.gov/hfd/hfdtypes.htm#5
This facility currently has a CLHF (A) license which means it provides services to persons who are mentally alert, physically disabled, who may be ventilator dependent. The facility also has its CLHF (C) License which is defined as services for persons who are catastrophically and severely disabled. A catastrophically and severely disabled person means a person whose origin of disability was acquired through trauma or non-degenerative neurologic illness, for whom it has been determined that active rehabilitation would be beneficial and for whom these services would be provided. Services offered by a CLHF to a catastrophically disabled person shall include, but not be limited to, speech, physical, and occupational therapy.
The ideal buyer would know how to operate the business portion of the CLHF to include understanding the compliance issues, the day to day operational issues to include marketing, staffing, patient-related logistics.
There are plenty of growth opportunities for strategic buyers and/or independent buyers.
Seller financing is not available.
Prior to meeting with the seller, it is imperative that ALL potential buyers: (1) Sign an NDA, (2) Provide Proof of Funds (redacted).
Important: No confidential information will be released and or emailed with only an NDA in place. An LOI will also be limited into its exclusivity period and a limited LOI due diligence will be available in the seller's office for review. Once you enter into a purchase agreement/formal escrow with earnest money deposited, the seller will completely open their confidential files for a complete due diligence.
Please Note: The seller is responsible for proving the accuracy of any information provided to the buyer's satisfaction. Information contained in this document is provided solely by the seller. No representations or warranties are provided by the broker, its agents, representatives, or subsidiaries as to the accuracy, completeness or validity of such information. Interested parties are encouraged to seek the counsel of their accountant, attorney and/or other business advisors. Cooperation limited to CalDRE Licensees with extensive experience in healthcare business sales.
To get more information about this Licensed Congregate Service - Non Operational business for sale in
Riverside County please phone Ralph Santos (Intermediary, Agent - BRE License #:02006120) at 818-731-7173 Cell and 888-736-2911 - if you get
voicemail please leave a detailed message - make sure you mention you
saw this posting/ad #257721 on BizBen.com. In addition to phoning
Ralph Santos, make sure you email Ralph Santos above to get more info about this
Licensed Congregate Service - Non Operational, to ask any questions or request an appointment to see this
business for sale. Thank you.