dealflow
envelope $200M

← Targets

Roane County Medical Center

dba Covenant Health Roane · Harriman, Roane County, TN · CCN 440031
Licensed to Roane County Medical Center

Composite
63.6
rank score
Distress
66
FY2024
Fit
80
vs thesis
Estimated ticket
$22.1M–$88.4M
52 beds · within envelope
Ownership
nonprofit
STH

Why it ranks here

  • operating margin -10% to -5%
  • total margin -8% to -3%
  • under 30 days cash on hand
  • current ratio under 1.5
  • occupancy 45-60%
  • margin deteriorating sharply
  • part of a multi-hospital chain — divestiture candidate
  • urban — higher occupancy and iteration surface
  • bed count in the target band
  • ticket size somewhat below the envelope
  • moderate occupancy
  • nonprofit — expect AG conversion review

Latest financials · FY2024

Net patient revenue$41.6M
Operating margin -6.7%
Total margin -5.5%
Days cash on hand 5
Current ratio 1.03
Occupancy51%

Facility

Beds52
Facility typeSTH
Settingurban
Ownership classnonprofit
Per-bed (low) $425K
Per-bed (high) $1.7M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 52 $38.1M $3.1M -1.3% 7.4% 0 0.93 55% 2,768 49
2022 52 $43.8M $3.5M 4.2% 7.6% 0 1.07 68% 3,107 26
2023 52 $44.3M $2.0M 2.4% 4.4% 0 1.07 61% 3,606 26
2024 52 $41.6M $-2.3M -6.7% -5.5% 5 1.03 51% 2,599 66

Owners

OwnerRole%SinceType
Covenant Health
Knoxville, TN
5% or greater direct ownership interest 100 2008-05 chain
Amy Delong corporate officer 2024-03
April Vonachen corporate officer 2024-09
April Vonachen w-2 managing employee 2024-09
James Vandersteeg corporate officer 2016-04
Jeremy Biggs corporate officer 2026-01
Jeremy Biggs w-2 managing employee 2026-01
Joseph Dolan corporate officer 2023-07
Rick Carringer corporate officer 2024-01

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 TN

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

DateBuyerSellerHospitalBeds
2024-10-01 West Tennessee Healthcare Henry County Henry County Medical Center Henry County Medical Center 33
2024-08-01 Bradley Medical Center Llc Cleveland Tennessee Hospital Company Llc Skyridge Medical Center 176
2023-07-01 Erlanger Health Chattanooga Hamilton County... Erlanger Medical Center 662
2022-07-01 Hh Health System - Lincoln Inc Lincoln Medical Center Lincoln Medical Center 47
2021-09-01 Springfield Health Services, Llc Northcrest Medical Center Northcrest Medical Center 109
2021-01-01 Vanderbilt Coffee Hospital Llc Tullahoma Hma Llc Vanderbilt Tullahoma-Harton Hospital 76
2021-01-01 Vanderbilt Bedford Hospital Llc Shelbyville Hospital Company Llc Vanderbilt Bedford County Hospital 24
2019-08-01 Vanderbilt University Medical Center Lebanon Hma Llc Vanderbilt Wilson County Hospital 117
2016-04-30 Vanderbilt University Medical Center Vanderbilt University Vanderbilt University Medical Center 1,084