dealflow
envelope $200M

← Targets

Mercy Hospital South

Saint Louis, St. Louis County, MO · CCN 260077
Licensed to Mercy Hospital South

Composite
15.1
rank score
Distress
28
FY2024
Fit
58
vs thesis
Estimated ticket
$362M–$1.4B
725 beds · over envelope
Ownership
nonprofit
STH

Why it ranks here

  • under 30 days cash on hand
  • occupancy 45-60%
  • 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
  • moderate occupancy
  • nonprofit — expect AG conversion review

Latest financials · FY2024

Net patient revenue$602M
Operating margin 3.1%
Total margin 7.8%
Days cash on hand 10
Current ratio 5.51
Occupancy54%

Facility

Beds725
Facility typeSTH
Settingurban
Ownership classnonprofit
Per-bed (low) $500K
Per-bed (high) $2.0M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 720 $519M $58.1M 6.9% 10.7% 10 5.58 52% 22,568 24
2022 720 $568M $27.9M 2.9% 4.8% 10 5.33 56% 32,002 24
2023 720 $545M $23.9M -1.2% 4.2% 10 10.59 52% 22,421 40
2024 725 $602M $49.5M 3.1% 7.8% 10 5.51 54% 29,686 28

Owners

OwnerRole%SinceType
Mercy Health
Chesterfield, MO
5% or greater indirect ownership interest 100 2017-06 chain
Mercy Health East Communities
Saint Louis, MO
5% or greater direct ownership interest 100 2017-06
Brian Day corporate officer 2025-05
Charles Carey corporate director 2021-07
Daniel Bippen corporate officer 2009-09
Elaine Moore corporate director 2019-07
James Powers corporate officer 2011-09
Jonathan Sturgeon corporate officer 2023-07
Jonathan Sturgeon w-2 managing employee 2023-07
Mark Merlotti corporate director 2021-07
Mary Graham corporate director 2015-09
Richard Mayhall corporate director 2009-09
Sean Hogan corporate officer 2018-07
Stacie Farnam w-2 managing employee 2022-07
Winthrop Reed corporate director 2022-07

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 MO

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

DateBuyerSellerHospitalBeds
2024-07-01 New Liberty Hospital Corporation New Liberty Hospital District Liberty Hospital 199
2024-01-01 Curators Of The University Of Missouri Capital Region Medical Center Univ Of Missouri Health Care 665
2024-01-01 Curators Of The University Of Missouri Capital Region Medical Center Univ Of Missouri Health Care 665