Why Dialysis?

Dialysis is among the highest margin (18 - 52 %) and highest revenue businesses. It is a well-established industry with guaranteed income secured by Medicare.

  • Congress signed into law in 1972 that any person diagnosed with End Stage Renal Disease in the US will get free or subsidized dialysis.

  • The average dialysis clinic in Southern California generates $4.4 MN in revenue. 80% of that is secured by Medicare reimbursement.

  • When a dialysis clinic improves overall patient outcomes, there is potential for higher rates of reimbursement per treatment.

Revenue comparison

Revenue projection in a theoretical 6,000 Sq Ft C2 commercial zoned property in economic opportunity areas in Los Angeles County as of June 2022

Dialysis projection

Income projection ($ in thousands) from 1 dialysis unit (6,000 Sq Ft). Introduction of 2-hour dialysis begins Year 3, increasing customer base up to 200% at full capacity.

Sales per store

Projected total revenue in average retail location in Los Angeles of national brands in various sectors

Economies of scale

As we acquire more properties and our construction costs go down, our total acquisition costs will decrease significantly over time. We will hit critical mass after just 3 locations when annual revenue per location exceeds costs. By the 10th location, we will venture outside Los Angeles and see significant upside in lower property value states like Arizona, Texas, and Georgia, further reducing acquisition value.

Cost breakdown

CapEx +OpEx capital for acquiring 1 property in Inglewood, opening and operating a dialysis clinic, and construction & planning for the entire property to Class A standard. Construction costs include zoning, permitting, environmental, architecture, engineering, and design, as well as materials, labor, and contracts. These costs are calculated based on estimates received from several LA-area developers.