dealflow
envelope $200M

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Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of Gadsden · Gadsden, Etowah County, AL · CCN 013032
Licensed to Encompass Health Rehabilitation Hospital Of Gadsden, Llc

Composite
35.9
rank score
Distress
9
FY2023
Fit
75
vs thesis
Estimated ticket
$15.9M–$63.7M
49 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • 60-90 days cash on hand
  • part of a multi-hospital chain — divestiture candidate
  • urban — higher occupancy and iteration surface
  • specialty facility — narrower problem scope
  • small but workable bed count
  • small ticket — deploys little of the available capital
  • strong occupancy — good iteration surface
  • for-profit — no charitable conversion review

Latest financials · FY2023

Net patient revenue$24.3M
Operating margin 15.0%
Total margin 15.2%
Days cash on hand 79
Current ratio 10.43
Occupancy94%

Facility

Beds49
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
2020 44 $19.8M $2.7M 13.9% 13.7% 62 4.09 91% 1,217 10
2021 46 $22.2M $3.6M 16.2% 16.3% 121 3.64 92% 1,298 4
2022 49 $22.4M $3.8M 16.6% 16.7% 40 5.80 89% 1,265 17
2023 49 $24.3M $3.7M 15.0% 15.2% 79 10.43 94% 1,362 9

Owners

OwnerRole%SinceType
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 100 2010-11 chain
Encompass Health Corporation
Birmingham, AL
operational/managerial control 100 2010-11 chain
Encompass Health Owned Hospitals Holdings Llc
Birmingham, AL
5% or greater direct ownership interest 100 2010-11
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 operational/managerial control 2025-01
Carey Mcrae other 2025-01
Frank Rayburn w-2 managing employee 2023-09
Mark Tarr operational/managerial control 2017-01
Robert Mccallum operational/managerial control 2025-01
Robert Mccallum other 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