dealflow
envelope $200M

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Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of Sioux Falls · Sioux Falls, Minnehaha County, SD · CCN 433027
Licensed to Encompass Health Rehabilitation Hospital Of Sioux Falls, Llc

Composite
60.2
rank score
Distress
63
FY2023
Fit
75
vs thesis
Estimated ticket
$11.1M–$44.2M
40 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • operating margin negative
  • total margin negative
  • under 30 days cash on hand
  • current ratio below 0.8
  • liabilities exceed assets
  • part of a multi-hospital chain — divestiture candidate
  • 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$17.1M
Operating margin -0.1%
Total margin -0.1%
Days cash on hand 0
Current ratio -0.14
Occupancy80%

Facility

Beds40
Facility typeRH
Settingurban
Ownership classfor-profit
Per-bed (low) $276K
Per-bed (high) $1.1M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 40 $15.1M $-508K -3.4% -3.4% 0 -0.25 65% 885 71
2022 40 $17.8M $-814K -4.6% -4.6% 0 -0.14 83% 894 74
2023 40 $17.1M $-16.9K -0.1% -0.1% 0 -0.14 80% 801 63

Owners

OwnerRole%SinceType
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 100 2018-11 chain
Encompass Health Owned Hospitals Holdings Llc
Birmingham, AL
5% or greater direct ownership interest 100 2018-11
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
Carey Mcrae operational/managerial control 2025-01
Encompass Health Corporation
Birmingham, AL
operational/managerial control 2018-11 chain
Kristina Schroder w-2 managing employee 2022-01
Mark Tarr corporate officer 2017-01
Mark Tarr operational/managerial control 2017-01
Robert Mccallum corporate officer 2025-01
Robert Mccallum operational/managerial control 2025-01

Ownership changes

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