dealflow
envelope $200M

← Targets

The Rehab Hospital At Raritan Bay

Elizabeth, Union County, NJ · CCN 312018
Licensed to The Rehabilitation Hospital At Raritan Bay Medical Center, Llc

Composite
59.8
rank score
Distress
75
FY2023
Fit
65
vs thesis
Estimated ticket
$16.0M–$63.8M
76 beds · within envelope
Ownership
for-profit
LTCH

Why it ranks here

  • operating margin -10% to -5%
  • total margin -8% to -3%
  • under 30 days cash on hand
  • current ratio below 0.8
  • occupancy 45-60%
  • margin deteriorating sharply
  • urban — higher occupancy and iteration surface
  • LTCH — distress here is a payment-model artifact
  • bed count in the target band
  • small ticket — deploys little of the available capital
  • moderate occupancy
  • for-profit — no charitable conversion review

Latest financials · FY2023

Net patient revenue$26.1M
Operating margin -5.4%
Total margin -4.8%
Days cash on hand 2
Current ratio 0.60
Occupancy47%

Facility

Beds76
Facility typeLTCH
Settingurban
Ownership classfor-profit
Per-bed (low) $210K
Per-bed (high) $840K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 76 $23.0M $2.1M 8.3% 9.2% 1 1.22 49% 317 28
2021 76 $37.4M $11.4M 28.5% 29.9% 1 1.56 64% 457 22
2022 76 $28.5M $404K 1.3% 1.4% 0 0.46 55% 355 48
2023 76 $26.1M $-1.3M -5.4% -4.8% 2 0.60 47% 350 75

Owners

OwnerRole%SinceType
Care One Llc
Fort Lee, NJ
5% or greater direct ownership interest 100 2004-11
Daniel Straus 5% or greater indirect ownership interest 38 2004-11
Des Holding Co., Inc.
Fort Lee, NJ
5% or greater indirect ownership interest 24 2021-12
Des-C 2009 Grat
Fort Lee, NJ
5% or greater indirect ownership interest 21 2009-10
Care One Management, Llc
Fort Lee, NJ
operational/managerial control 2006-06
David Baruch corporate officer 2021-12
Des 2009 Gst Trust
Fort Lee, NJ
5% or greater indirect ownership interest 2021-12
Sharon Bready corporate director 2021-12
Sharon Bready w-2 managing employee 2021-12

Ownership changes

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