dealflow
envelope $200M

← Targets

Covenant Health Hobbs Hospital

Hobbs, Lea County, NM · CCN 320065
Licensed to Covenant Hospital Hobbs

Composite
65.5
rank score
Distress
97
FY2024
Fit
50
vs thesis
Estimated ticket
$1.8M–$3.5M
25 beds · within envelope
Ownership
nonprofit
STH

Why it ranks here

  • operating margin below -10%
  • total margin below -8%
  • under 30 days cash on hand
  • current ratio below 0.8
  • liabilities exceed assets
  • occupancy 30-45%
  • margin deteriorating sharply
  • part of a multi-hospital chain — divestiture candidate
  • rural — cheaper but limited density
  • small but workable bed count
  • very small ticket — sub-scale as a platform asset
  • thin occupancy
  • nonprofit — expect AG conversion review

Latest financials · FY2024

Net patient revenue$37.9M
Operating margin -87.9%
Total margin -82.7%
Days cash on hand 0
Current ratio -4.84
Occupancy37%

Facility

Beds25
Facility typeSTH
Settingrural
Ownership classnonprofit
Per-bed (low) $70.0K
Per-bed (high) $140K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 61 $42.9M $5.5M -2.8% 11.0% 0 -0.02 26% 1,900 60
2021 61 $22.4M $23.2M -1.1% 50.6% 160 1.15 20% 868 28
2022 61 $44.3M $-6.3M -13.7% -13.9% 1 0.22 26% 1,979 89
2023 34 $31.8M $-17.7M -57.7% -54.8% 0 -5.99 27% 1,105 89
2024 25 $37.9M $-32.2M -87.9% -82.7% 0 -4.84 37% 1,026 97

Owners

OwnerRole%SinceType
Covenant Health System
Lubbock, TX
5% or greater direct ownership interest 100 2021-01
St. Joseph Health System
Irvine, CA
other 57 2021-01 chain
Lubbock Methodist Hospital System
Lubbock, TX
other 43 2021-01
Alfredo Turrubiates corporate director 2024-01
Carabeth Moore corporate director 2024-01
Clay Schneiter corporate director 2025-01
Cora Rivera corporate officer 2023-10
Debra Hicks corporate director 2021-08
Derrick Jones corporate officer 2025-03
Donald Anderson corporate officer 2021-01
Dustin Armstrong corporate director 2026-01
Dyana Kerr w-2 managing employee 2023-03
Gregory Hoffman corporate officer 2023-01
Joel White corporate director 2024-01
Joseph Cotton corporate director 2021-08
Joshua Grassham corporate director 2021-08
Kathleen Burrell corporate officer 2023-03
Providence Health & Services - Washington
Renton, WA
operational/managerial control 2021-01
Providence St. Joseph Health
Renton, WA
other 2021-01
Rebecca Titus corporate director 2025-01
Rosa Carrillo corporate director 2021-08
Shawn Hardison corporate director 2026-01

Ownership changes

DateTypeBuyerSeller
2021-01-01 change of ownership Covenant Hospital Hobbs Lea Regional Hospital Llc

Who has been buying in NM

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

DateBuyerSellerHospitalBeds
2024-01-01 Unm Hospital Unm Sandoval Regional Medical Center, Inc University Of New Mexico Hospital 508
2021-01-01 Covenant Hospital Hobbs Lea Regional Hospital Llc Covenant Health Hobbs Hospital 25
2020-07-01 San Juan Regional Medical Center, Inc. San Juan Regional Rehabilitation... San Juan Regional Medical Center 182