dealflow
envelope $200M

← Targets

Kona Community Hospital

dba Kona Hospital · Kealakekua, Hawaii County, HI · CCN 120019
Licensed to Kona Hospital

Composite
52.6
rank score
Distress
68
FY2024
Fit
55
vs thesis
Estimated ticket
$7.1M–$14.1M
83 beds · within envelope
Ownership
government
STH

Why it ranks here

  • operating margin below -10%
  • total margin negative
  • under 30 days cash on hand
  • liabilities exceed assets
  • margin deteriorating
  • rural — cheaper but limited density
  • bed count in the target band
  • very small ticket — sub-scale as a platform asset
  • strong occupancy — good iteration surface
  • government-owned — public process likely

Latest financials · FY2024

Net patient revenue$108M
Operating margin -47.8%
Total margin -0.2%
Days cash on hand 22
Current ratio 1.68
Occupancy73%

Facility

Beds83
Facility typeSTH
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
2021 83 $83.4M $5.6M -40.7% 4.3% 143 2.39 53% 2,550 46
2022 83 $96.1M $-3.4M -38.0% -2.5% 100 2.66 70% 2,680 51
2023 83 $105M $-5.8M -37.0% -3.8% 66 2.06 82% 2,726 61
2024 83 $108M $-303K -47.8% -0.2% 22 1.68 73% 3,309 68

Owners

OwnerRole%SinceType
Hawaii Health Systems Corporation
Honolulu, HI
5% or greater direct ownership interest 100 1997-11
James Lee corporate officer 100 2020-08
James Lee w-2 managing employee 100 2020-08
Daniel Rick corporate director 2008-05
David Hiranaka corporate director 2020-04
Frank Sayre corporate director 2014-07
Jane Dierenfield corporate director 2017-07
Jeffry Brinkley corporate director 2020-07
Laura Bowman corporate director 2020-04
Mark Nellis corporate officer 2021-04
Michael Schlueter corporate director 2014-07
Richard Taaffe corporate director 2007-08
Sarah Hathaway corporate director 2020-07

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 HI

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

DateBuyerSellerHospitalBeds
2024-10-08 The Queens Medical Center Sutter Health Pacific The Queens Medical Center 674
2017-07-01 Maui Health System A Kaiser... Maui Memorial Medical Center Maui Memorial Medical Center 219