Business Description

Stark County Mental Health Practice Established 35 Years+

$631,082 Annual Revenue at a 50.3% Earnings Margin with Institutional Referral Channels Requiring No Marketing Spend

Business Description

Three distinct referral pipelines feed this practice without advertising. Primary care physicians, school districts, and the county court system each route patients through established intake processes. Those channels have operated continuously since the practice opened in 1988 and transfer with the sale. The practice does not depend on any single referral source, and no marketing budget supports patient acquisition.

Revenue of $631,082 comes from individual, family, and group therapy delivered to patients across all age groups. Insurance billing runs through active payer contracts already in place. Patients return for ongoing care rather than single visits, which produces predictable scheduling and stable billing cycles. SDE of $317,368 represents a 50.3% margin on that revenue base.

One full-time employee supports operations alongside clinical staff. The practice leases space in a professional office complex. Intake, scheduling, and billing follow defined systems that do not require the seller's involvement to function. The operational structure is documented and in active daily use.

A buyer acquires patient records, active payer contracts, Ohio licensure, staff, and the full referral network built across 35 years of continuous operation in Stark County. The asking price of $549,000 represents a 1.73x multiple on SDE. FF&E of $13,330 is included.

Business History

The practice opened in Stark County in 1988 and has operated without interruption since. Service offerings expanded over the decades to include individual, family, and group therapy across all age groups. Credentialing with insurance payers accumulated over that same period and remains active. The practice navigated multiple economic cycles and successive changes in Ohio healthcare regulation without a break in service or a loss of institutional referral relationships.

Current licensure is in good standing. Payer contracts are active. The referral network with physicians, schools, and courts reflects 35 years of consistent service delivery, not a single relationship or individual. That network is institutional in structure and transfers with the practice.

Potential Growth and Expansion

• Telehealth is not a primary delivery channel. Adding telehealth expands the patient catchment area beyond Stark County and increases clinician scheduling capacity without adding physical space or staff.
• Psychiatric medication management is not offered. Adding one prescribing provider creates a new revenue stream within the existing patient base and increases clinical scope without building a new referral network.
• Group therapy sessions generate higher revenue per clinician hour than individual sessions. Expanding group programming increases revenue per hour worked without adding headcount.
• The practice has not conducted structured outreach to its existing institutional referral sources. A direct outreach program to school counselors and primary care offices increases referral volume through channels already producing patients.
• Credentialing with additional insurance payers expands the eligible patient population. No new physical infrastructure is required to add payer contracts.

Competitive Overview

Provider supply in Stark County falls short of mental health service demand. Ohio ranks among states with the widest gap between licensed mental health providers and population need. Hospital-employed clinician groups and community mental health centers operate in the same county but serve different patient segments under different reimbursement structures. Those competitors carry higher administrative overhead and operate under institutional clinical protocols that independent practices are not subject to.

Hospital systems across Ohio have acquired independent medical practices at an accelerating rate over the past decade. Mental health practices have experienced less acquisition pressure than primary care and specialty medicine during that consolidation period. An independent practice with 35 years of active operation and established court, school, and physician referral relationships holds a market position that requires decades to build. A new entrant to Stark County cannot replicate that position in the near term.

Key Highlights

• Annual revenue of $631,082 with SDE of $317,368 (50.3% margin)
• Founded in 1988, 35-plus years of continuous operation in Stark County
• 1 full-time employee; leased space in a professional office complex
• Active payer contracts, Ohio licensure, and staff transfer with the sale
• Referral relationships with physicians, school districts, and the court system require no marketing spend to maintain
• Revenue trend is consistent year-over-year growth
• FF&E of $13,330 included; inventory is $0
• Reason for sale is retirement; practice operations are active and fully staffed

Financials Summary

Ideal Buyer Profile

$549,000 in available capital is the baseline requirement. A licensed Ohio clinician (LPCC, LISW, psychologist, or psychiatrist) can step into an active caseload from day one and assume the clinical director role without additional hiring. A buyer without clinical credentials needs a qualified clinical director credentialed and in place before closing. Healthcare administration or practice management experience shortens the transition timeline. This is a working practice with active staff, patient obligations, and daily operational demands. Buyers seeking a passive investment should look elsewhere.

Confidentiality Notice

A signed confidentiality agreement is required before financial details are released. Qualified buyers should contact the listing broker to request the full offering memorandum.