A fully licensed detox and residential treatment facility located in Cathedral City, California, is being offered as an asset sale and presents a strategic platform opportunity for experienced behavioral health operators, clinical groups, or investors seeking entry or expansion within a highly regulated market.
The business is established with a comprehensive licensing profile, including a DHCS license, Medication-Assisted Treatment (MAT) authorization, CLIA certification, Joint Commission accreditation, and LegitScript certification. The entity maintains a clean compliance record, is in good standing with the California Secretary of State, and has no exclusions identified through federal OIG screening. The clinical framework includes an established medical directorship and supports dual diagnosis treatment services.
Operationally, the platform is supported by an implemented EMR system, HR and payroll infrastructure, and access to medical and clinical staffing as needed for relaunch. The business also maintains relationships with an accounting firm and medical billing provider, providing continuity across financial and revenue cycle functions.
The company benefits from a fully developed brand presence, including an established website, active social media channels, and a recognizable presence within the local community. The facility is strategically located near hospitals and healthcare providers, supporting future referral development and patient acquisition.
Historically, the business has demonstrated market demand, with reported revenue growth from approximately $167,000 in 2024 to over $344,000 in 2025 (per Seller).
The opportunity is structured as an asset sale and includes a vehicle. The facility operates under a lease with terms of two years or more. The business accepts private insurance and cash pay, with additional upside available through contracting with major health insurance providers.
Significant growth opportunities exist through increasing census, expanding referral relationships, and enhancing payer mix. Additional expansion potential includes developing Intensive Outpatient (IOP) and Outpatient (OP) programs, leveraging existing infrastructure, licensing, and brand presence.
This opportunity is best suited for a qualified operator capable of relaunching operations, scaling census, and maximizing the value of an already established regulatory and operational platform.
Ownership is seeking to transition out of the business to pursue other ventures.
Seller Preferences:
Healthcare experience in detox/residential treatment, verifiable proof of funds, and established referral sources with access to licensed professionals.
Seller Recommendations:
Ability to generate referrals, access to a qualified team, and engagement of professionals (consultant, accountant, attorney) for due diligence.
Buyer Requirements:
Execution of NDA and submission of proof of funds.
Due Diligence:
Further diligence beyond the CIM requires submission of a Purchase Agreement.
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* Buyer to verify due diligence.
Competition: The Southern California behavioral health market remains highly competitive but continues to experience strong demand for detox and residential treatment services. Regulatory barriers to entry, including DHCS licensing and compliance requirements, create a significant advantage for already licensed facilities such as this one. The proximity to hospitals and healthcare providers further enhances referral potential and long-term growth viability.
Growth & Expansion: The primary opportunity lies in relaunching operations, rebuilding census, and optimizing staffing structure. Additional upside includes developing referral relationships, expanding payer mix (including private insurance and government programs), and leveraging existing infrastructure to scale efficiently. A disciplined operational strategy can position the business toward breakeven and long-term profitability.
Support & Training: Seller is willing to provide transition support to assist the buyer in understanding prior operations, compliance framework, and initial relaunch strategy to ensure continuity and operational readiness post-closing.
