dealflow
envelope $200M

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Mercyone - Newton Medical Center

dba Mercyone Newton Medical Center · Newton, Jasper County, IA · CCN 160032
Licensed to Mercy Medical Center-Newton

Composite
54.1
rank score
Distress
61
FY2024
Fit
62
vs thesis
Estimated ticket
$20.4M–$81.6M
48 beds · within envelope
Ownership
nonprofit
STH

Why it ranks here

  • operating margin -10% to -5%
  • total margin -8% to -3%
  • 90-150 days cash on hand
  • current liabilities exceed current assets
  • liabilities exceed assets
  • occupancy below 30%
  • part of a multi-hospital chain — divestiture candidate
  • urban — higher occupancy and iteration surface
  • small but workable bed count
  • ticket size somewhat below the envelope
  • very low occupancy — limited volume to learn from
  • nonprofit — expect AG conversion review

Latest financials · FY2024

Net patient revenue$37.2M
Operating margin -9.3%
Total margin -4.1%
Days cash on hand 106
Current ratio 0.88
Occupancy15%

Facility

Beds48
Facility typeSTH
Settingurban
Ownership classnonprofit
Per-bed (low) $425K
Per-bed (high) $1.7M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 48 $34.5M $-2.6M -11.7% -7.4% 51 0.94 16% 617 74
2022 48 $36.9M $-5.1M -18.9% -12.6% 20 0.72 17% 696 89
2023 48 $34.5M $-3.7M -17.4% -10.2% 0 0.52 14% 660 100
2024 48 $37.2M $-1.6M -9.3% -4.1% 106 0.88 15% 661 61

Owners

OwnerRole%SinceType
Catholic Health Initiatives-Iowa Corp
Des Moines, IA
5% or greater direct ownership interest 100 2022-09
Mercy Health Network Inc
Clive, IA
5% or greater indirect ownership interest 100 2022-09
Trinity Health Corporation
Livonia, MI
5% or greater indirect ownership interest 100 2022-09 chain
Adam Otto corporate officer 2019-01
Adam Otto corporate director 2019-01
Bev Rossow corporate officer 2020-07
Bev Rossow corporate director 2020-07
Carol Farver corporate director 2024-04
Chad Kelley corporate officer 2023-04
Chad Kelley corporate director 2023-07
Chad Kelley w-2 managing employee 2023-04
Cynthia Tripp w-2 managing employee 2009-09
Lois Vogel corporate director 2015-07
Mark Allen corporate officer 2018-05
Mark Allen corporate director 2018-05
Michael Trachta corporate director 2023-07
Patrick Edwards corporate director 2025-01
Robert Robinson corporate director 2024-07
Sandra Christensen corporate officer 2024-12
William Reynolds corporate director 2021-07

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 IA

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

DateBuyerSellerHospitalBeds
2025-09-01 Northwest Iowa Hospital Corporation Marian Health Center-Smhc St. Lukes Regl Medical Center 179
2024-01-31 State University Of Iowa Mercy Hospital Iowa City Iowa University Of Iowa Health Care Medic 211
2021-07-01 Southeast Iowa Regional Medical Center Inc Fort Madison Community Hospital Southeast Iowa Regional Medical Ctr 174