dealflow
envelope $200M

← Targets

Encompass Health Lakeshore Rehabilit

dba Encompass Health Lakeshore Rehabilitation Hospital · Birmingham, Jefferson County, AL · CCN 013025
Licensed to Rebound Llc

Composite
58.1
rank score
Distress
53
FY2023
Fit
81
vs thesis
Estimated ticket
$27.6M–$110M
100 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • operating margin below -10%
  • total margin under 2%
  • 30-60 days cash on hand
  • margin deteriorating sharply
  • part of a multi-hospital chain — divestiture candidate
  • urban — higher occupancy and iteration surface
  • specialty facility — narrower problem scope
  • bed count in the target band
  • ticket size somewhat below the envelope
  • strong occupancy — good iteration surface
  • for-profit — no charitable conversion review

Latest financials · FY2023

Net patient revenue$49.2M
Operating margin -11.9%
Total margin 1.7%
Days cash on hand 34
Current ratio 2.48
Occupancy90%

Facility

Beds100
Facility typeRH
Settingurban
Ownership classfor-profit
Per-bed (low) $276K
Per-bed (high) $1.1M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 100 $45.5M $7.1M 16.0% 15.6% 121 5.48 88% 2,656 4
2021 100 $48.3M $1.9M -0.2% 3.8% 51 3.49 93% 2,725 32
2022 100 $46.9M $443K -5.1% 0.9% 82 3.24 89% 2,638 36
2023 100 $49.2M $950K -11.9% 1.7% 34 2.48 90% 2,703 53

Owners

OwnerRole%SinceType
Advanced Homecare Holdings Inc.
Birmingham, AL
5% or greater indirect ownership interest 100 2022-07
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 100 1986-12 chain
Encompass Ip Holdings Corporation
Birmingham, AL
5% or greater direct ownership interest 100 2022-07
Truist Bank
Charlotte, NC
5% or greater security interest 100 2026-03
Vanguard Group Inc
Malvern, PA
5% or greater indirect ownership interest 10 2023-12
Blackrock Inc
New York, NY
5% or greater indirect ownership interest 9 2023-12
Carey Mcrae corporate officer 2025-01
Carey Mcrae operational/managerial control 2025-01
Encompass Health Corporation
Birmingham, AL
operational/managerial control 1993-12 chain
Mark Tarr corporate officer 2017-01
Mark Tarr operational/managerial control 2017-01
Michael Bartell w-2 managing employee 2018-07
Robert Mccallum corporate officer 2025-01
Robert Mccallum operational/managerial control 2025-01

Ownership changes

No CMS ownership change on record since 2016 — this hospital has not traded in at least a decade.

Who has been buying in AL

Completed CMS ownership changes in this state. These buyers already cleared the licensure process here — and whoever advised them knows this market.

DateBuyerSellerHospitalBeds
2019-06-01 Rehabilitation Hospital Of North... Rebound Llc Encompass Health Rehabilitation Hosp 85