dealflow
envelope $200M

← Targets

Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of Reading · Reading, Berks County, PA · CCN 393026
Licensed to Encompass Health Rehabilitation Hospital Of Reading, Llc

Composite
37.9
rank score
Distress
4
FY2024
Fit
86
vs thesis
Estimated ticket
$19.5M–$78.0M
60 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • 90-150 days cash on hand
  • part of a multi-hospital chain — divestiture candidate
  • urban — higher occupancy and iteration surface
  • specialty facility — narrower problem scope
  • bed count in the target band
  • ticket size somewhat below the envelope
  • strong occupancy — good iteration surface
  • for-profit — no charitable conversion review

Latest financials · FY2024

Net patient revenue$28.1M
Operating margin 12.8%
Total margin 15.4%
Days cash on hand 115
Current ratio 6.15
Occupancy68%

Facility

Beds60
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
2021 60 $23.9M $3.5M 11.9% 14.1% 121 5.68 66% 1,109 4
2022 60 $25.8M $2.3M 6.2% 8.7% 79 5.25 70% 1,180 10
2023 60 $24.9M $3.5M 11.1% 13.5% 95 6.24 62% 1,108 4
2024 60 $28.1M $4.5M 12.8% 15.4% 115 6.15 68% 1,283 4

Owners

OwnerRole%SinceType
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 100 2015-01 chain
Encompass Health Owned Hospitals Holdings Llc
Birmingham, AL
5% or greater direct ownership interest 100 2015-01
Truist Bank
Charlotte, NC
5% or greater security interest 100 2026-03
Vanguard Group Inc
Malvern, PA
5% or greater indirect ownership interest 10 2023-12
Blackrock Inc
New York, NY
5% or greater indirect ownership interest 9 2023-12
Carey Mcrae operational/managerial control 2025-01
Carey Mcrae other 2025-01
Encompass Health Corporation
Birmingham, AL
operational/managerial control 1997-08 chain
Mark Tarr operational/managerial control 2017-01
Robert Mccallum operational/managerial control 2025-01
Robert Mccallum other 2025-01
Robert Wiegand w-2 managing employee 2025-05

Ownership changes

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