dealflow
envelope $200M

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Rehabilitation Hospital Of Northern

dba Rehabilitation Hospital Of Northern Arizona · Flagstaff, Coconino County, AZ · CCN 033041
Licensed to Rehabilitation Hospital Of Northern Arizona Llc

Composite
63.0
rank score
Distress
39
FY2024
Fit
86
vs thesis
Estimated ticket
$13.0M–$52.0M
40 beds · within envelope
Ownership
for-profit
PE 6y REIT

Why it ranks here

  • under 30 days cash on hand
  • current ratio below 0.8
  • debt above 85% of assets
  • PE-owned 6 years — approaching exit window
  • REIT-encumbered — sale-leaseback, rent obligation attached
  • 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 · FY2024

Net patient revenue$20.4M
Operating margin 15.6%
Total margin 16.5%
Days cash on hand 0
Current ratio 0.01
Occupancy82%

Facility

Beds40
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 40 $12.3M $-550K -11.9% -4.2% 8 0.03 55% 587 89
2022 40 $15.3M $482K 2.1% 3.1% 7 0.03 64% 643 47
2023 40 $18.1M $2.1M 10.3% 11.5% 4 0.02 74% 722 47
2024 40 $20.4M $3.4M 15.6% 16.5% 0 0.01 82% 847 39

Owners

OwnerRole%SinceType
Epoch Acquisition Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Midco, Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Parent Holdings Llc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Parent Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Ernest Health Holdings Llc
Albuquerque, NM
5% or greater direct ownership interest 100 2017-12
One Equity Partners Vii Lp
New York, NY
5% or greater indirect ownership interest 58 2018-10 PE
Medical Properties Trust, Inc.
Vestavia, AL
5% or greater indirect ownership interest 49 2017-12 REIT
One Equity Partners Vii-A Lp
New York, NY
5% or greater indirect ownership interest 30 2018-10 PE
One Equity Partners Vii-B Lp
New York, NY
5% or greater indirect ownership interest 12 2018-10 PE
Caleb Reed corporate officer 2023-06
Denise Kann corporate officer 2023-06
Ernest Health, Inc
Albuquerque, NM
other 2017-12
Eudora Cannon corporate officer 2023-06
Eudora Cannon other 2023-06
Jacob Socha corporate officer 2023-06
Jon Cook w-2 managing employee 2021-06

Ownership changes

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