dealflow
envelope $200M

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Rehabilitation Hospital Of Southern

Las Cruces, Dona Ana County, NM · CCN 323032
Licensed to Rehabilitation Hospital Of Southern New Mexico, Inc

Composite
54.1
rank score
Distress
39
FY2023
Fit
75
vs thesis
Estimated ticket
$13.0M–$52.0M
40 beds · within envelope
Ownership
for-profit
PE 5y

Why it ranks here

  • under 30 days cash on hand
  • current ratio below 0.8
  • debt above 85% of assets
  • PE-owned 5 years — approaching exit window
  • urban — higher occupancy and iteration surface
  • specialty facility — narrower problem scope
  • small but workable bed count
  • small ticket — deploys little of the available capital
  • strong occupancy — good iteration surface
  • for-profit — no charitable conversion review

Latest financials · FY2023

Net patient revenue$22.3M
Operating margin 15.0%
Total margin 15.3%
Days cash on hand 0
Current ratio 0.03
Occupancy88%

Facility

Beds40
Facility typeRH
Settingurban
Ownership classfor-profit
Per-bed (low) $325K
Per-bed (high) $1.3M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 40 $18.7M $2.5M 3.3% 12.2% 2 0.04 87% 837 43
2021 40 $19.9M $4.6M 21.8% 23.0% 7 0.04 85% 844 43
2022 40 $20.9M $3.4M 13.0% 15.7% 1 0.03 87% 857 43
2023 40 $22.3M $3.4M 15.0% 15.3% 0 0.03 88% 885 39

Owners

OwnerRole%SinceType
Epoch Acquisition Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Midco, Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Parent Holdings Llc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Parent Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Ernest Health Holdings Llc
Mesquite, TX
5% or greater indirect ownership interest 100 2012-02
Ernest Health, Inc
Mesquite, TX
5% or greater direct ownership interest 100 2012-02
Mpt Of Las Cruces Llc
Vestavia, AL
5% or greater security interest 84 2020-12
One Equity Partners Vii Lp
New York, NY
5% or greater indirect ownership interest 58 2018-10 PE
One Equity Partners Vii-A Lp
New York, NY
5% or greater indirect ownership interest 30 2018-10 PE
Capital One Na
Mc Lean, VA
5% or greater security interest 16 2018-10
One Equity Partners Vii-B Lp
New York, NY
5% or greater indirect ownership interest 12 2018-10 PE
Caleb Reed corporate officer 2023-06
Denise Kann corporate officer 2023-06
Ernest Health, Inc
Mesquite, TX
other 2018-10
Eudora Cannon corporate officer 2023-06
Eudora Cannon other 2023-06
Jacob Socha corporate officer 2023-06
Sabrina Martin w-2 managing employee 2009-08

Ownership changes

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