dealflow
envelope $200M

← Targets

Suburban Community Hospital

Norristown, Montgomery County, PA · CCN 390116
Licensed to Prime Healthcare Services-Suburban Hospital Llc

Composite
71.0
rank score
Distress
95
FY2023
Fit
70
vs thesis
Estimated ticket
$38.9M–$155M
111 beds · within envelope
Ownership
nonprofit
STH

Why it ranks here

  • operating margin below -10%
  • total margin below -8%
  • 30-60 days cash on hand
  • current ratio below 0.8
  • liabilities exceed assets
  • occupancy below 30%
  • margin deteriorating sharply
  • urban — higher occupancy and iteration surface
  • bed count in the target band
  • ticket size uses the capital envelope well
  • very low occupancy — limited volume to learn from
  • nonprofit — expect AG conversion review

Latest financials · FY2023

Net patient revenue$40.6M
Operating margin -42.0%
Total margin -30.7%
Days cash on hand 35
Current ratio 0.11
Occupancy20%

Facility

Beds111
Facility typeSTH
Settingurban
Ownership classnonprofit
Per-bed (low) $350K
Per-bed (high) $1.4M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 111 $42.5M $-5.4M -35.1% -10.3% 24 0.16 24% 1,993 100
2021 111 $42.6M $-11.5M -32.8% -25.4% 8 0.11 22% 2,071 100
2022 111 $42.0M $-16.9M -46.3% -37.8% 16 0.10 19% 1,977 100
2023 111 $40.6M $-13.6M -42.0% -30.7% 35 0.11 20% 2,057 95

Owners

OwnerRole%SinceType
Prime Healthcare Foundation Inc
Ontario, CA
5% or greater direct ownership interest 100 2017-01
Prime Healthcare Holdings Inc
Ontario, CA
5% or greater indirect ownership interest 100 2015-11
Christopher Doan corporate officer 2018-01
Kenneth Wheeler corporate officer 2015-11
Kenneth Wheeler w-2 managing employee 2015-11
Luis Leon corporate officer 2020-06
Michael Motte corporate officer 2020-06
Michael Motte corporate director 2020-06
Michael Motte w-2 managing employee 2020-06
Prime Healthcare Services, Inc
Ontario, CA
operational/managerial control 2015-11
Steven Aleman corporate officer 2020-06

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 PA

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

DateBuyerSellerHospitalBeds
2025-01-21 Tenor Health Foundation Sharon, Llc Steward Sharon Regional Health System, Inc. Sharon Regional Health System 141
2023-09-02 Chh Community Health Chestnut Hill Hospital Llc Chestnut Hill Hospital 128
2023-07-01 Valley Medical Facilities Inc Valley Medical Facilities Inc Heritage Valley Sewickley 220
2022-05-09 Lehigh Valley Hospital Lehigh Valley Hospital -... Lehigh Valley 1,216
2021-07-01 Dubois Regional Medical Center Clearfield Hospital Dubois Regional Medical Center 261
2021-06-14 Avenues Recovery Medical Center At... Valley Forge Medical Center &... Valley Forge Medical Center 70
2021-01-01 Robert Packer Hospital Guthrie Towanda Memorial Hospital Robert Packer Hospital 252
2020-07-01 St. Luke's Hospital- Easton Campus Steward Easton Hospital, Inc St Lukes Hospital - Easton Campus 29
2018-05-26 Lehigh Valley Hospital - Schuylkill Schuylkill Medical Center - East... Lehigh Valley Hospital - Schuylkill 118
2017-07-01 Upmc Carlisle Carlisle Hma Llc Upmc Carlisle 66