Buying a medical supply business in Orlando and Central 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 Orange, Seminole, Osceola, Lake, Sumter and Marion counties: Orlando, Winter Park, Kissimmee, St. Cloud, Sanford, Clermont, Leesburg, Ocala and the large retirement communities of Sumter and Lake counties. Tourism is what the area is best known for, built on the theme parks, the hotels, the vacation rental homes around Kissimmee and the Orange County Convention Center. It's far from the only business. The University of Central Florida and the military simulation and training offices near it support a technology base, and health care is a major employer.

Marion County is horse country, with thoroughbred farms around Ocala, and it has added warehouses and distribution centers along Interstate 75. Retirees in Sumter and Lake create steady demand for medical practices, home care, home maintenance and auto services. The building trades, restaurants, and companies that serve hotels and rental homes do well across the region.

Central Florida is inland, so storm surge isn't the worry it is on the coasts. Hurricanes still bring wind damage and flooding, though: Hurricane Ian flooded neighborhoods in Orange, Seminole and Osceola counties in 2022. Ask whether the business or its customers were affected.

Tourism keeps demand steadier through the year than in markets that depend on winter residents, with busy stretches around school holidays. Hotels, parks and restaurants compete hard for workers, which pushes up wages for any company that hires hourly staff. New homes have spread fast in Osceola, south Lake and southeast Orange counties and around Ocala, so check whether a company's customers are in growing areas or older ones. Traffic on Interstate 4 limits how much ground a service company can cover in a day.