dealflow
envelope $200M

← Targets

Methodist H/c Memphis Hospt.

dba Methodist Hospitals Of Memphis · Memphis, Shelby County, TN · CCN 440049
Licensed to Methodist Healthcare - Memphis Hospitals

Composite
22.8
rank score
Distress
70
FY2023
Fit
64
vs thesis
Estimated ticket
$463M–$1.9B
1,322 beds · over envelope
Ownership
nonprofit
STH

Why it ranks here

  • operating margin below -10%
  • total margin below -8%
  • under 30 days cash on hand
  • margin deteriorating sharply
  • urban — higher occupancy and iteration surface
  • very large — likely out of range
  • estimated price exceeds the capital envelope
  • strong occupancy — good iteration surface
  • nonprofit — expect AG conversion review

Latest financials · FY2023

Net patient revenue$1.7B
Operating margin -16.1%
Total margin -16.1%
Days cash on hand 0
Current ratio 5.89
Occupancy73%

Facility

Beds1,322
Facility typeSTH
Settingurban
Ownership classnonprofit
Per-bed (low) $350K
Per-bed (high) $1.4M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 1,305 $1.4B $69.7M -31.5% 3.7% 0 0.64 73% 59,835 63
2021 1,295 $1.7B $-10.5M -6.2% -0.6% 0 0.90 73% 52,176 61
2022 1,314 $1.7B $-37.8M -11.5% -2.0% 0 1.89 74% 52,855 58
2023 1,322 $1.7B $-266M -16.1% -16.1% 0 5.89 73% 52,593 70

Owners

OwnerRole%SinceType
Larry Fogarty corporate officer 2000-01
Larry Fogarty w-2 managing employee 2000-01
Methodist Le Bonheur Healthcare
Memphis, TN
5% or greater direct ownership interest 2008-05
Michael Ugwueke corporate officer 2014-05

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