dealflow
envelope $200M

← Targets

Southwest Memorial Hospital

Cortez, Montezuma County, CO · CCN 061327
Licensed to Southwest Health System Inc

Composite
33.7
rank score
Distress
34
FY2023
Fit
46
vs thesis
Estimated ticket
$1.7M–$3.4M
20 beds · within envelope
Ownership
government
CAH

Why it ranks here

  • operating margin negative
  • total margin under 2%
  • 60-90 days cash on hand
  • current ratio under 1.5
  • occupancy 45-60%
  • margin slipping
  • rural — cheaper but limited density
  • very small facility
  • very small ticket — sub-scale as a platform asset
  • moderate occupancy
  • government-owned — public process likely

Latest financials · FY2023

Net patient revenue$76.4M
Operating margin -3.7%
Total margin 0.6%
Days cash on hand 68
Current ratio 1.48
Occupancy53%

Facility

Beds20
Facility typeCAH
Settingrural
Ownership classgovernment
Per-bed (low) $85.0K
Per-bed (high) $170K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 25 $52.6M $794K -28.9% 1.2% 96 1.45 35% 908 49
2021 25 $63.6M $1.3M -12.9% 1.8% 88 1.55 44% 931 51
2022 23 $74.6M $-670K -1.3% -0.9% 74 1.49 41% 895 47
2023 20 $76.4M $451K -3.7% 0.6% 68 1.48 53% 885 34

Owners

OwnerRole%SinceType
Joseph Theine w-2 managing employee 100 2023-07
Daniel Valverde corporate director 2018-06
Sean Killoy corporate director 2021-09
Shirley Jones corporate director 2018-12
Southwest Health System Inc
Cortez, CO
5% or greater direct ownership interest 2007-12
Southwest Health System Inc
Cortez, CO
operational/managerial control 2007-12
Susan Hodgdon corporate director 2019-05

Ownership changes

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