dealflow
envelope $200M

← Targets

Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of North Alabama · Huntsville, Madison County, AL · CCN 013029
Licensed to Rehabilitation Hospital Of North Alabama, Llc

Composite
38.8
rank score
Distress
10
FY2024
Fit
81
vs thesis
Estimated ticket
$27.6M–$110M
85 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • 90-150 days cash on hand
  • margin deteriorating
  • 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 · FY2024

Net patient revenue$44.1M
Operating margin 13.3%
Total margin 13.3%
Days cash on hand 104
Current ratio 4.90
Occupancy98%

Facility

Beds85
Facility typeRH
Settingurban
Ownership classfor-profit
Per-bed (low) $325K
Per-bed (high) $1.3M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 70 $33.5M $5.8M 17.2% 17.3% 58 2.99 95% 1,802 17
2022 85 $34.6M $3.2M 14.5% 9.7% 60 2.77 95% 1,871 10
2023 85 $42.1M $7.6M 17.9% 18.0% 121 5.51 96% 2,220 4
2024 85 $44.1M $5.9M 13.3% 13.3% 104 4.90 98% 2,368 10

Owners

OwnerRole%SinceType
Barclays Bank Plc
New York, NY
5% or greater security interest 100 2020-12
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 100 2019-01 chain
Encompass Health Owned Hospitals Holdings Llc
Birmingham, AL
5% or greater direct ownership interest 100 2019-01
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
Invesco Ltd
Atlanta, GA
5% or greater indirect ownership interest 5 2024-12
Brent Mills w-2 managing employee 2022-06
Carey Mcrae operational/managerial control 2025-01
Carey Mcrae other 2025-01
Encompass Health Corporation
Birmingham, AL
operational/managerial control 2019-01 chain
Mark Tarr operational/managerial control 2017-01
Robert Mccallum operational/managerial control 2025-01
Robert Mccallum other 2025-01

Ownership changes

DateTypeBuyerSeller
2019-06-01 change of ownership Rehabilitation Hospital Of... Rebound Llc

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