Medical Practice For Lease in Adamstown, NSW
GP clinic for sale in Newcastle suburbMedical Practice | Posted
Adamstown in the city of Newcastle has very good potential and is available for a 100% sale of the business with a lease assignment.
This practice was established 52 yrs ago and they currently have 1.5 FTE GPs with another female GP just recently committing to another 2 days a week at a 70/30 fee split. She will be using the only preserved DWS exempt provider number this practice has. At the time of going to market, the status was RRMA 2 and non-DWS. The practice was purchased in Sept 2017 for $200K from the existing owner who has ceased his transition. Last years financials indicated the gross billings were about $680K. Since acquiring this practice the owners have added in new tables and couches as well as new printers and computers. There are new patients coming in regularly and the practice sees about 30 pts per day. The owner currently has 2 other GP practices; all inland from Newcastle and not competing with this practice for patients. He is hoping to sell to reduce the travel time required to get from his home to work each day that he drives to Newcastle. The location is good being only about 5 city blocks from the train station, close to a primary school, vet clinic, health hub with pathology and imaging as well as a shopping centre so plenty of walking traffic past the front door. With a modern website and online bookings available, there are 2x practice nurses to assist in maximising the efficiencies of the GPs. The clinic is mixed billing with BB available for healthcare holders, pensioners, and children under 15 as well as those that are facing financial hardship. This clinic is accredited with AGPAL so received government incentives.
The owner is looking for $195K for this business whereby the rent per annum is only $60K + GST + on-costs. There is 1+ years left on this commercial space which ends Oct 2019 with another 3 yr option remaining. The owner and his wife can both work in this practice in order to meet current patient demand until the new owner comes in after settlement. All of the current owner's patients will then transition to the new owner so they can hit the ground running immediately with this well located clinic with high pedestrian traffic; not far from the Adamstown plaza. Plenty of street parking with addition patient parking at the rear. If required, the female GP can remain working for the new owner for another 12 months after settlement on a 2-day a week basis.
The practice gets about $36K in incentives per quarter and could be getting up to $60K if the drs were billing appropriately. There is no path income as there is path across the road, A dietitian comes once a month and is on a fee split of 70/30. A skin cancer GP also comes once a month and is on a 65/35 fee split. There is the equivalent of 2 FTE, with the wife doing 2 days a week, the husband doing 1 day and a DWS restricted GP doing 2 days a week. A lady GP joined in 2019 and is working full time hours. If the buyer needed to have the DWS exemption to work in this practice, they would have to get the p/t GP to withdraw from practice to use their preserved provider no#. With 3x CRs here, there is loads of potential for a buyer to grow this business. The practice was purchased in Sept 2017 and the vendor is bringing the business to market again for $195K.
The practice is now recognized as a teaching practice so is eligible for registrars of the college to join the team.
|Type of Offer||For Lease|
|Location||301 Brunker Rd, Adamstown, NSW|
|DWS Status||Not DWS|
|Remote Classification||MM 1 - Major City|
|No. of Practitioners||1 FTE|
|No. of Staff||1 FTE|
|No. of Rooms||3|
|Floor Area||200 m2|
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