dealflow
envelope $200M

← Targets

Cornerstone Specialty Tucson

dba Cornerstone Specialty Hospitals Tucson · Tucson, Pima County, AZ · CCN 032004
Licensed to Chg Hospital Tucson, Llc

Composite
69.2
rank score
Distress
91
FY2024
Fit
70
vs thesis
Estimated ticket
$7.1M–$28.6M
34 beds · within envelope
Ownership
for-profit
LTCH

Why it ranks here

  • operating margin below -10%
  • total margin below -8%
  • current liabilities exceed current assets
  • liabilities exceed assets
  • occupancy 30-45%
  • margin deteriorating sharply
  • urban — higher occupancy and iteration surface
  • LTCH — distress here is a payment-model artifact
  • small but workable bed count
  • small ticket — deploys little of the available capital
  • thin occupancy
  • for-profit — no charitable conversion review

Latest financials · FY2024

Net patient revenue$8.3M
Operating margin -66.7%
Total margin -57.4%
Days cash on hand
Current ratio 0.98
Occupancy44%

Facility

Beds34
Facility typeLTCH
Settingurban
Ownership classfor-profit
Per-bed (low) $210K
Per-bed (high) $840K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 34 $19.1M $2.6M 13.6% 13.8% 0 0.49 88% 518 47
2022 34 $18.3M $2.3M 10.0% 12.5% 0 0.71 85% 532 43
2023 34 $15.0M $-1.2M -9.5% -8.0% 1 1.71 66% 407 72
2024 34 $8.3M $-5.0M -66.7% -57.4% 0.98 44% 240 91

Owners

OwnerRole%SinceType
Chg Hospital Operations Company Llc
Dallas, TX
5% or greater direct ownership interest 100 2015-02
Cornerstone Healthcare Group Holding Inc
Dallas, TX
5% or greater indirect ownership interest 100 2015-02
Kentucky Hospital Holdings Jv Lp
Louisville, KY
5% or greater indirect ownership interest 100 2023-01
Kentucky Hospital Holdings Llc
Louisville, KY
5% or greater indirect ownership interest 100 2023-01
Kentucky Hospital Intermediate Llc
Louisville, KY
5% or greater indirect ownership interest 100 2023-01
Kindred Healthcare Llc
Louisville, KY
5% or greater indirect ownership interest 100 2023-01
Kindred Healthcare Operating Llc
Louisville, KY
5% or greater indirect ownership interest 100 2023-01
Knight Health Holdings Llc
Louisville, KY
5% or greater indirect ownership interest 100 2023-01
Knight Health Llc
Louisville, KY
5% or greater indirect ownership interest 100 2023-01
Knight Intermediate Holdings Llc
Louisville, KY
5% or greater indirect ownership interest 100 2023-01
Dana Rock corporate officer 2024-12
Deanna Schiavone corporate officer 2023-01
Johnetta Traylor corporate officer 2024-12
Kathy Teague corporate officer 2023-01
Michael Bean corporate officer 2023-01
Michael Moody corporate officer 2023-01
Richard Algood corporate officer 2023-01
Sassan Momtazbakhsh operational/managerial control 2015-02
Scott Graeser corporate officer 2023-01

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 AZ

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

DateBuyerSellerHospitalBeds
2024-05-14 Phoenix Specialty Hospital Kpc Promise Hospital Of Phoenix, Llc Kpc Promise Hospital Of Phoenix 48