dealflow
envelope $200M

← Targets

Denver Regional Rehabilitation Hospi

Thorton, Adams County, CO · CCN 063035
Licensed to Denver Regional Rehabilitation Hospital Llc

Composite
58.2
rank score
Distress
49
FY2023
Fit
81
vs thesis
Estimated ticket
$10.1M–$40.3M
31 beds · within envelope
Ownership
for-profit
PE 3y

Why it ranks here

  • under 30 days cash on hand
  • current ratio below 0.8
  • debt above 85% of assets
  • margin deteriorating sharply
  • PE-owned 3 years
  • 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$13.4M
Operating margin 7.5%
Total margin 7.6%
Days cash on hand 0
Current ratio 0.03
Occupancy83%

Facility

Beds31
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 31 $12.8M $6.2M 47.2% 47.8% 135 1.57 89% 740 4
2021 31 $13.6M $1.8M 11.6% 13.2% 456 23.41 88% 707 0
2022 31 $12.5M $-732K -6.1% -5.8% 3 4.03 79% 602 61
2023 31 $13.4M $1.0M 7.5% 7.6% 0 0.03 83% 637 49

Owners

OwnerRole%SinceType
Capital One Na
Mclean, VA
5% or greater security interest 100 2020-07
Epoch Acquisition Inc
New York, NY
5% or greater indirect ownership interest 100 2020-07
Epoch Midco, Inc
New York, NY
5% or greater indirect ownership interest 100 2020-07
Epoch Parent Holdings Llc
New York, NY
5% or greater indirect ownership interest 100 2020-07
Epoch Parent Inc
New York, NY
5% or greater indirect ownership interest 100 2020-07
Ernest Health Holdings Llc
Mesquite, TX
5% or greater direct ownership interest 100 2020-07
One Equity Partners Vii Lp
New York, NY
5% or greater indirect ownership interest 58 2020-07 PE
One Equity Partners Vii-A Lp
New York, NY
5% or greater indirect ownership interest 30 2020-07 PE
One Equity Partners Vii-B Lp
New York, NY
5% or greater indirect ownership interest 12 2020-07 PE
Caleb Reed corporate officer 2023-06
Christine Duhon w-2 managing employee 2024-08
Denise Kann corporate officer 2023-06
Ernest Health, Inc
Mesquite, TX
other 2020-07
Eudora Cannon corporate officer 2023-06
Eudora Cannon other 2023-06
Jacob Socha corporate officer 2023-06

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 CO

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

DateBuyerSellerHospitalBeds
2018-11-01 Encompass Pahs Rehabilitation Hospital, Llc Encompass Health Rehabilitation... Encompass Health Rehabilitation Hosp 60