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CA Family/Geriatric Practice w/ Aledade ACO For Sale

Santa Cruz County, California - North, US
Asking Price:
$640,000 Furniture / Fixtures included
Sales Revenue:
$1,126,287
Cash Flow:
$366,792

A long-established, single-physician family medicine practice with a geriatric focus is available for acquisition in coastal Central California. The practice has nearly two decades of continuous community presence, a stable Medicare-weighted patient panel, and has been a participating practice in the Aledade Accountable Care Organization (Medicare Shared Savings Program) since 2020, generating recurring annual shared-savings revenue. The owner is retiring.

KEY INVESTMENT HIGHLIGHTS

  • ~550 attributed senior lives under the Aledade ACO - a foundational asset for any value-based-care strategy
  • Five consecutive years of revenue and earnings growth (2021-2025)
  • 2025: $1,126,287 revenue / $366,792 SDE / 32.6% margin
  • Stable and favorable payor mix comprised of approximately 37% traditional Medicare, 56% commercial PPO, 5% Medi-Cal or self-pay, and 2% Medicare Advantage, with no HMO participation.
  • ~80% completion rate on Medicare Annual Wellness Visits - a leading indicator of attribution stickiness and shared-savings yield
  • ~1,500 active patients; ~5,000 annual encounters
  • Bilingual physician and support team (English/Spanish); ~30% Spanish-speaking patient population
  • Hospital-attached medical office building with 800 sq ft of expansion-ready adjacent space, supporting a second provider
  • Owner serves as a paid Aledade Local Medical Director, coaching other practices on value-based-care performance - institutional-quality VBC playbook embedded in the practice

WHY THIS PRACTICE - TWO BUYER PROFILES

For a mid-career employed primary care physician (ages 40-55) inside a large health system seeking ownership, this is a complete, working alternative on day one: 20 years of patient relationships, an established referral pipeline, modern EHR (Elation) and outsourced RCM (AdvancedMD) already in place, a long-tenured bilingual support team, and a four-and-a-half-day owner schedule. Seller financing of $65,000 is available to a qualified physician buyer.

For a regional primary care or multi-specialty group based in Santa Cruz, Gilroy, Monterey, or Salinas, this is an immediately accretive entry into South Santa Cruz County - a market with structural undersupply of independent primary care. The ~550 attributed senior lives under the Aledade ACO represent the most expensive resource to build organically and the most attractive to acquire. Bilingual capability and adjacent expansion runway support a clean two-provider trajectory without relocation risk.

FINANCIAL SUMMARY (Seller-Reported)

Year Revenue SDE Margin
2025 $1,126,287 $366,792 32.6%
2024 $1,102,183 $368,266 33.4%
2023 $973,284 $352,973 36.3%
2022 $773,487 $277,719 35.9%
2021 $679,090 $227,129 33.5%

Recurring annual Medicare shared-savings payments are received each fall from the prior performance year through the Aledade ACO and are reflected in the figures above.

TRANSACTION

Asking Price: $640,000 - $575,000 cash at close plus a $65,000 seller-carry note to a qualified physician buyer, secured by practice assets. $25,000 minimum earnest money to open escrow. Accounts receivable excluded. ~$20,000 estimated FF&E value included. No leased equipment to assume. Landlord (20-year relationship) prepared to enter a fresh 5+5+5 long-term lease with the buyer.

NEXT STEP

A signed NDA grants access to the full Confidential Information Memorandum, which includes detailed financial breakdowns, payor mix analysis, complete service-line revenue, lease documentation, and other operational detail. Serious inquiries only.

In Association with Scott Reid & ParaSell, Inc. | A Licensed California Broker

Property Information

Real Estate:

Lease

Location:

Santa Cruz County, CA

Premises Details:

1,200 sq ft suite in the medical office building attached to a community hospital. 2 exam rooms, dedicated procedure room (table, surgical light, Bovie), provider office, 4 MA/nursing stations, lab, reception, storage. Adjacent 800 sq ft expansion space available through same landlord supports a 2nd provider. Unlimited hospital parking. Landlord open to fresh 5+5+5 lease.

Size in square feet:
1,200

Business Operation

Management type:
This business is owner operated.
Expansion Potential:

Five near-term growth levers, none requiring a change in practice model: (1) Reopen the patient panel - owner has intentionally limited new-patient intake; demand exceeds supply locally. (2) Build out the adjacent 800 sq ft and add a 2nd provider, doubling clinical capacity. (3) Launch a Chronic Care Management (CCM) program - the Medicare-weighted, chronic-condition-heavy panel is a near-perfect fit. (4) Add aesthetic services as cash-pay ancillary. (5) Insource currently-referred-out procedures (vasectomies, cardiac stress testing).

Competition / Market:

Santa Cruz County primary care is structurally constrained - Kaiser, Sutter, and Dignity employ most local PCPs, and patient dissatisfaction with appointment availability and the impersonal corporate-medicine experience is well documented. This drives the practice's word-of-mouth new-patient pipeline. The practice differentiates on accessibility, continuity, direct physician access, and bilingual service. Long-term fundamentals favor independents: aging population, persistent physician undersupply, and growing demand for bilingual care.

Reasons for selling:

The owner is retiring after nearly 20 years operating the practice and does not intend to continue practicing medicine following the sale. He has indicated flexibility on transition support, including overlap arrangements, to ensure a smooth transfer of patient care and operations to the new owner.

Employees:
4
Years established:
2005

Other Information

Support & training:

Seller offers up to 2 weeks unpaid + 4 weeks paid training, with overlap arrangements by mutual agreement. Aledade ACO infrastructure, EHR (Elation), and outsourced RCM (AdvancedMD) are already in place - minimal operational onboarding required. Seller recommends the 8-hour MGMA physician business training course for buyers new to independent practice.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

$65,000