dealflow
envelope $200M

← Targets

Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of Mechanicsburg · Mechanicsburg, Cumberland County, PA · CCN 393031
Licensed to Encompass Health Rehabilitation Hospital Of Mechanicsburg, Llc

Composite
37.9
rank score
Distress
4
FY2024
Fit
86
vs thesis
Estimated ticket
$24.4M–$97.5M
75 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$37.6M
Operating margin 13.8%
Total margin 15.5%
Days cash on hand 134
Current ratio 4.55
Occupancy78%

Facility

Beds75
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 75 $29.0M $2.7M 6.5% 9.1% 115 3.97 67% 1,399 4
2022 75 $33.3M $3.7M 8.2% 10.7% 105 4.47 75% 1,551 4
2023 75 $35.8M $5.8M 15.4% 16.1% 116 4.75 75% 1,628 4
2024 75 $37.6M $6.0M 13.8% 15.5% 134 4.55 78% 1,729 4

Owners

OwnerRole%SinceType
Encompass Health Corporation
Birmingham, AL
5% or greater direct ownership interest 100 1993-12 chain
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 corporate officer 2025-01
Encompass Health Corporation
Birmingham, AL
operational/managerial control 1993-12 chain
Kristen Turner w-2 managing employee 2022-09
Mark Tarr operational/managerial control 2017-01
Robert Mccallum corporate officer 2025-01

Ownership changes

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