dealflow
envelope $200M

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Arizona Orthopedic Surgical Hospital

dba Arizona Specialty Hospital · Chandler, Maricopa County, AZ · CCN 030112
Licensed to Orthopedic And Surgical Specialty Company Llc

Composite
54.7
rank score
Distress
66
FY2023
Fit
62
vs thesis
Estimated ticket
$10.2M–$40.8M
24 beds · within envelope
Ownership
for-profit
STH

Why it ranks here

  • operating margin negative
  • total margin negative
  • under 30 days cash on hand
  • current ratio under 1.5
  • debt above 70% of assets
  • occupancy below 30%
  • margin deteriorating sharply
  • urban — higher occupancy and iteration surface
  • very small facility
  • small ticket — deploys little of the available capital
  • very low occupancy — limited volume to learn from
  • for-profit — no charitable conversion review

Latest financials · FY2023

Net patient revenue$29.6M
Operating margin -0.3%
Total margin -1.4%
Days cash on hand 17
Current ratio 1.19
Occupancy10%

Facility

Beds24
Facility typeSTH
Settingurban
Ownership classfor-profit
Per-bed (low) $425K
Per-bed (high) $1.7M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 24 $26.8M $2.7M 7.4% 9.7% 61 1.78 18% 820 23
2021 24 $31.8M $2.7M 4.6% 8.1% 48 1.41 19% 786 33
2022 24 $26.2M $-2.5M -9.6% -9.5% 12 0.96 12% 464 83
2023 24 $29.6M $-426K -0.3% -1.4% 17 1.19 10% 416 66

Owners

OwnerRole%SinceType
Dignity Usp Phoenix Surgery Centers Ii Llc
Addison, TX
operational/managerial control 100 2022-02
Dignity Usp Phoenix Surgery Centers Ii Llc
Addison, TX
5% or greater direct ownership interest 70 2022-01
Dignity Health
San Francisco, CA
5% or greater indirect ownership interest 35 2003-02
Tenet Healthcare Corporation
Dallas, TX
5% or greater indirect ownership interest 35 2015-06
United Surgical Partners Holdings Inc
Dallas, TX
5% or greater indirect ownership interest 35 2001-04
United Surgical Partners International Inc
Addison, TX
5% or greater indirect ownership interest 35 2001-04
Usp Domestic Holdings Inc
Addison, TX
5% or greater indirect ownership interest 35 2001-04
Usp Phoenix Inc
Addison, TX
5% or greater indirect ownership interest 35 2003-02
Uspi Group Holdings Inc
Addison, TX
5% or greater indirect ownership interest 35 2007-04
Uspi Holding Company Inc
Addison, TX
5% or greater indirect ownership interest 35 2015-06
Uspi Holdings Inc
Addison, TX
5% or greater indirect ownership interest 35 2007-04
Hcn Surgery Center Holdings Inc
Dallas, TX
5% or greater indirect ownership interest 15 2015-06
Barbara Mcwilliams corporate officer 2024-05
Barbara Mcwilliams w-2 managing employee 2024-05
Eric Boon corporate officer 2020-06
Eric Boon w-2 managing employee 2020-06

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 AZ

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

DateBuyerSellerHospitalBeds
2024-10-03 Honorhealth St Lukes Medical Center Lp Tempe St. Lukes Hospital 74
2024-10-03 Honorhealth Mountain Vista Medical Center Lp Mountain Vista Medical Center 138
2019-02-01 Dignity Community Care Dignity Health Chandler Regional Medical Center 429