dealflow
envelope $200M

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Kennestone Hospital

dba Wellstar Kennestone Regional Medical Center · Marietta, Cobb County, GA · CCN 110035
Licensed to Kennestone Hospital, Inc.

Composite
15.0
rank score
Distress
26
FY2024
Fit
60
vs thesis
Estimated ticket
$321M–$1.3B
642 beds · over envelope
Ownership
government
STH

Why it ranks here

  • under 30 days cash on hand
  • margin deteriorating
  • part of a multi-hospital chain — divestiture candidate
  • urban — higher occupancy and iteration surface
  • very large — likely out of range
  • estimated price exceeds the capital envelope
  • strong occupancy — good iteration surface
  • government-owned — public process likely

Latest financials · FY2024

Net patient revenue$1.7B
Operating margin 12.8%
Total margin 20.4%
Days cash on hand 0
Current ratio 3.20
Occupancy100%

Facility

Beds642
Facility typeSTH
Settingurban
Ownership classgovernment
Per-bed (low) $500K
Per-bed (high) $2.0M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 642 $1.2B $351M 14.6% 25.2% 0 1.83 89% 36,638 22
2022 642 $1.3B $307M 12.7% 21.0% 0 3.58 89% 35,780 27
2023 642 $1.5B $377M 15.3% 22.9% 0 5.57 90% 39,868 22
2024 642 $1.7B $382M 12.8% 20.4% 0 3.20 100% 43,121 26

Owners

OwnerRole%SinceType
Ebenezer Erzuah w-2 managing employee 100 2009-07
John Kerndl corporate officer 100 2025-02
John Kerndl w-2 managing employee 100 2025-02
Joseph Reppert corporate officer 100 2024-04
Joseph Reppert w-2 managing employee 100 2020-08
Wellstar Health System Inc
Marietta, GA
5% or greater direct ownership interest 100 1993-02 chain
David Bottoms corporate director 5 2023-02
Edward Richardson corporate director 5 2019-04
Frank Ros corporate director 5 2012-06
Greg Morgan corporate director 5 2014-07
Gretchen Corbin corporate director 5 2024-10
Heather Graham corporate director 5 2025-09
James Cunningham corporate director 5 2021-03
James Holmes corporate director 5 2016-04
James Hornsby corporate director 5 2018-07
John Mckibben corporate director 5 2019-08
Keith Parker corporate director 5 2023-07
Mark Berry corporate director 5 2021-10
Mitzi Moore corporate director 5 2014-04
Orrin Swayze corporate director 5 2014-07
Paul Douglass corporate director 5 2016-08
William Brock corporate director 5 2015-07
Wellstar Health System Inc
Marietta, GA
operational/managerial control 2007-11 chain

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 GA

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

DateBuyerSellerHospitalBeds
2023-11-01 South Georgia Medical Center Inc Hospital Authority Of Valdosta And... South Georgia Medical Center 261
2023-11-01 South Georgia Medical Center Inc Hospital Authority Of Valdosta And... Sgmc Berrien Campus 10
2023-07-01 Northeast Georgia Medical Center... The Hospital Authority Of Habersham County Ngmc Habersham 53
2021-07-03 Navicent Health Baldwin, Inc Navicent Health Oconee, Llc Atrium Health Navicent Baldwin 86
2021-06-22 Burke Hospital Company Burke County Hospital Authority Burke Medical Center 40
2021-05-01 Vidalia Health Services, Llc Meadows Regional Medical Center Inc Meadows Regional Medical Center 57
2018-02-01 Savannah Health Services, Llc Memorial Health University Medical... Memorial Health Univ Med Center 594
2017-12-29 Chi Memorial Hospital - Georgia Cornerstone Medical Center, Llc Chi Memorial Hospital - Georgia 35
2017-10-01 Piedmont Rockdale Hospital, Inc. Rockdale Hospital Llc Piedmont Rockdale Hospital 181
2017-05-01 Southeast Georgia Health Services, Llc Mayo Clinic Health System In Waycross, Inc Memorial Satilla Health 130
2017-01-01 Ngmc Barrow Llc Winder Hma Llc Ngmc Barrow 38
2016-04-01 Wellstar Spalding Regional Hospital Inc Spalding Regional Medical Center, Inc. Spalding Regional Hospital 170
2016-04-01 Wellstar North Fulton Hospital Inc North Fulton Medical Center, Inc. North Fulton Regional Hospital 178
2016-02-01 Prime Healthcare Foundation -... Southern Regional Health Center, Inc Southern Regional Medical Center 233
2016-01-01 St Francis Health Llc St Francis Hospital, Inc. St. Francis Hospital Inc. 312