Home Health Care
Active
Highly Profitable Licensed Detox & Residential Treatment Facility
Los Angeles County, California, United States
Asking Price-
Revenue$2,540,000
EBITDA-
Cash Flow-
Description
Confidential opportunity to acquire an established six-bed inpatient detox and residential substance use treatment facility located in Southern California.
The facility opened in 2024 and is California DHCS certified and Joint Commission accredited, providing medically supervised detoxification, residential treatment, aftercare support, and programming for co-occurring behavioral health conditions.
The operation utilizes a fee-for-service revenue model and maintains an established admissions and insurance-verification infrastructure supporting a broad range of commercial insurance plans and payer relationships. The facility also benefits from a professional clinical and operational management structure, including program, clinical, medical, nursing, therapy, and operations personnel.
Financial performance has been exceptionally strong based on seller-provided internal financial statements. 2025 revenue was approximately $2.54 million with reported net income of approximately $1.65 million. For January through July 2026, the company reported approximately $1.47 million in revenue and $1.08 million in net income.
The facility operates from an attractive residential setting and delivers detox, residential treatment, and aftercare from a single location. The seller also owns the underlying real estate, which may be available for purchase separately, providing a qualified buyer with the opportunity to potentially acquire both the operating company and its facility.
Significant growth opportunities include expanding licensed bed capacity, adding PHP/IOP services, developing additional in-network payer relationships, strengthening referral channels, and expanding digital patient acquisition.
This opportunity may be particularly attractive to an existing behavioral healthcare operator, strategic buyer, private investor, or healthcare group seeking an established California platform with licensing, accreditation, infrastructure, and significant profitability already in place.
Additional information, financials, and a Confidential Information Memorandum are available to qualified buyers following execution of an NDA and buyer qualification.
Key Highlights
6 licensed inpatient beds
California DHCS certified
Joint Commission accredited
Detox, residential treatment and aftercare
Approximately $2.54M 2025 revenue
Approximately $1.65M reported 2025 net income
Approximately $1.47M revenue Jan–July 2026
Approximately $1.08M reported net income Jan–July 2026
Established clinical and operations team
Broad insurance-verification infrastructure
Real estate potentially available separately
Expansion opportunities through additional beds, PHP/IOP and payer contracting
One thing I would not put in the public listing yet is the company name, exact Palmdale address, owners’ names, website, or the 65%–73% profit margins. Those numbers are unusually strong, and because the CIM specifically says the financial statements are internally prepared and not independently audited, I’d advertise the actual reported dollars but make buyers sign the NDA before we give them the detailed financial package.
Real Estate
Rent is $17,000 per month
Facilities & Assets
The business operates from a single residential treatment property in Palmdale, California, configured as a six-bed inpatient detox and residential treatment facility. The property supports detox, residential care, aftercare programming, private accommodations, communal living areas, a pool, and a home theater.
The real estate is owned by the sellers and may be purchased separately by the buyer, providing an opportunity to acquire both the operating business and the underlying property. The business currently carries rent expense of approximately $17,000 per month.
The materials provided do not include a detailed furniture, fixtures, equipment, or medical equipment inventory, so those items should be confirmed during due diligence.
Market & Competition
The company operates in the Southern California behavioral health and substance use treatment market, which remains highly fragmented and includes a mix of independent residential facilities, outpatient providers, and larger treatment platforms. The CIM notes that this fragmented structure creates room for specialized operators with strong local positioning.
Desert Paradise differentiates itself through California DHCS certification, Joint Commission accreditation, a high-touch six-bed residential model, and an integrated continuum of detox, residential treatment, and aftercare delivered at one location.
The facility is located in Los Angeles County, where competition is meaningful, but the CIM also notes a continued gap between the number of people needing substance use treatment and those actually receiving it.
The business is positioned toward the premium, personalized-care segment rather than competing strictly on volume, with private accommodations and residential amenities sup
Growth Opportunities
Several clear avenues for expansion are identified in the CIM. The most immediate is increasing licensed bed capacity, either at the existing location or through an additional licensed property, which could increase census and revenue without rebuilding the core clinical model.
Additional opportunities include adding PHP and IOP services to retain patients as they step down from residential care, broadening in-network payer relationships, and building a more formal referral network with hospitals, physicians, employers, courts, and county providers.
The business may also benefit from expanding its digital patient acquisition strategy, including paid search, retargeting, and conversion tracking around its existing website, substance-specific landing pages, and insurance verification process.
The CIM also identifies potential access to California behavioral health infrastructure funding as another avenue that could help support future facility expansion.
Business listed by
AI Business Brokers of America
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