dealflow
envelope $200M

← Targets

Spartanburg Rehabilitation Institute

Spartanburg, Spartanburg County, SC · CCN 423031
Licensed to Spartanburg Rehabilitation Institute Inc

Composite
58.6
rank score
Distress
49
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
  • margin deteriorating sharply
  • 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$20.0M
Operating margin 11.4%
Total margin 14.8%
Days cash on hand 2
Current ratio 0.02
Occupancy85%

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 $16.9M $3.7M 16.3% 20.9% 1 0.01 83% 854 43
2021 40 $16.5M $2.2M 6.9% 12.6% 9 0.02 74% 778 43
2022 40 $18.3M $1.7M 5.1% 8.9% 2 0.01 80% 809 43
2023 40 $20.0M $3.1M 11.4% 14.8% 2 0.02 85% 822 49

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
Albuquerque, NM
5% or greater indirect ownership interest 100 2012-02
Ernest Health, Inc
Albuquerque, NM
5% or greater direct ownership interest 100 2008-06
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
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
Albuquerque, NM
other 2023-06
Eudora Cannon corporate officer 2023-06
Eudora Cannon other 2023-06
Jacob Socha corporate officer 2023-06
Richard Schulz w-2 managing employee 2013-04

Ownership changes

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