dealflow
envelope $200M

← Targets

Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of Middletown · Middletown, New Castle County, DE · CCN 083026
Licensed to Encompass Health Rehabilitation Hospital Of Middletown, Llc

Composite
31.9
rank score
Distress
0
FY2023
Fit
75
vs thesis
Estimated ticket
$13.0M–$52.0M
40 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • part of a multi-hospital chain — divestiture candidate
  • 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$29.9M
Operating margin 28.1%
Total margin 28.0%
Days cash on hand 196
Current ratio 6.61
Occupancy97%

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
2020 40 $25.7M $7.0M 27.0% 27.0% 113 6.31 95% 1,186 4
2021 40 $26.9M $7.6M 28.1% 28.2% 113 6.39 97% 1,223 4
2022 40 $29.2M $8.2M 28.0% 28.1% 101 7.63 97% 1,273 4
2023 40 $29.9M $8.3M 28.1% 28.0% 196 6.61 97% 1,304 0

Owners

OwnerRole%SinceType
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 100 2010-09 chain
Encompass Health Owned Hospitals Holdings Llc
Birmingham, AL
5% or greater direct ownership interest 100 2010-09
Truist Bank
Charlotte, NC
5% or greater security interest 100 2026-03
Vanguard Group Inc
Malvern, PA
5% or greater indirect ownership interest 10 2023-12
Blackrock Inc
New York, NY
5% or greater indirect ownership interest 9 2023-12
Carey Mcrae operational/managerial control 2025-01
Carey Mcrae other 2025-01
Dustin Mcfarland w-2 managing employee 2024-04
Encompass Health Corporation
Birmingham, AL
operational/managerial control 2014-12 chain
Mark Tarr operational/managerial control 2017-01
Robert Mccallum operational/managerial control 2025-01
Robert Mccallum other 2025-01

Ownership changes

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