Buying a medical supply business in Jacksonville and Northeast Florida

• Many accounts and referral sources, with no single clinic, health system or physician driving most sales.
• Sales reps whose accounts would stay with the company if they left.
• Recurring revenue from rentals, resupply programs and standing orders, rather than one-time sales.
• A billing team with few denied claims and documentation that holds up in audits.
• Supplier relationships and pricing a new owner can keep, including any exclusive territory for a product line.
• A rental fleet tracked by serial number, with cleaning and maintenance logged on schedule.
• Current accreditation and licenses with no lapses, and a clean record with Medicare and the Medicaid plans it bills.
• Delivery routes, inventory counts and reorder points kept in a system, not in the owner's head.

• Medicare pricing. Medicare's competitive bidding program is coming back as a single nationwide round, with bids due in early 2027 and contracts starting January 1, 2028 (CMS's target dates). It covers continuous glucose monitors, insulin pumps, ostomy and urological supplies and some off-the-shelf braces, and only winning bidders can bill Medicare for those items. If they matter to this business, ask whether the seller is bidding.
• Audits. Audits by Medicare and the plans, denied claims and repayment demands, and whether patient files have valid orders and proof of delivery. Florida Medicaid can hold a buyer liable for overpayments identified by closing (section 409.907(6)).
• Referral arrangements. Payments, free staff or perks for doctors or other referral sources can break federal anti-kickback law. Have a health care attorney read every such contract.
• Customer contracts. For distributors, how much of sales rests on a few customers, and the terms of any contracts with group purchasing organizations or health systems.
• Inventory and fleet. Expired or slow-moving stock, goods held on consignment, and the age and condition of rental equipment.
• Supplier agreements that end, or need the manufacturer's consent, when ownership changes.

• Which products bring in the most revenue and profit, and how much comes from rentals and resupply compared with one-time sales?
• Who are your largest payers or customers, and are any contracts up for renewal soon?
• Which doctors, hospitals or clinics send you most of your patients or orders?
• How often are claims denied, and have you had any audits or repayment requests?
• Which accreditation and licenses do you hold, and when are the next renewals and surveys?
• Do any manufacturer or distribution agreements need consent to move to a new owner?
• Who runs billing, delivery and the warehouse day to day, and would they stay?

This region covers Duval, St. Johns, Clay, Nassau, Baker and Putnam counties: Jacksonville, Jacksonville Beach, St. Augustine, Ponte Vedra Beach, Orange Park, Fleming Island, Green Cove Springs, Fernandina Beach, Yulee, Macclenny and Palatka. Jacksonville merged with most of Duval County in 1968, which makes it the largest city by land area in the lower 48 states.

The economy leans on logistics, the Navy and financial services. Logistics runs through JAXPORT, major rail lines and the meeting of Interstates 95 and 10. The Navy has Naval Air Station Jacksonville and Naval Station Mayport. Insurance and health care matter too. St. Augustine, founded by the Spanish in 1565, and Amelia Island draw steady tourism. Trucking and logistics firms, the building trades, medical practices and home services all fit this market.

Northeast Florida is less seasonal than South or Southwest Florida, with fewer winter residents and more year-round employers. Direct hurricane landfalls have been less common here than on other parts of the coast, but storms still bring flooding along the St. Johns River and the beaches, so check insurance costs and flood zones.

Military families bring skilled workers and working spouses into the labor pool, though they also move on when orders change. St. Johns, Clay and Nassau have added the most new homes, and companies serving those suburbs have grown with them. Georgia is close, and some companies here serve customers across the state line. Work in Georgia may need Georgia licenses, so ask how much revenue comes from there and who holds those licenses.