dealflow
envelope $200M

← Targets

Fort Sanders Regional Medical Center

Knoxville, Knox County, TN · CCN 440125
Licensed to Fort Sanders Regional Medical Center

Composite
55.5
rank score
Distress
57
FY2023
Fit
70
vs thesis
Estimated ticket
$25.7M–$51.3M
302 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
  • margin deteriorating
  • part of a multi-hospital chain — divestiture candidate
  • rural — cheaper but limited density
  • large — ticket likely stretches the envelope
  • small ticket — deploys little of the available capital
  • strong occupancy — good iteration surface
  • nonprofit — expect AG conversion review

Latest financials · FY2023

Net patient revenue$376M
Operating margin -5.8%
Total margin -3.2%
Days cash on hand 0
Current ratio 1.69
Occupancy82%

Facility

Beds302
Facility typeSTH
Settingrural
Ownership classnonprofit
Per-bed (low) $85.0K
Per-bed (high) $170K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 285 $299M $4.9M -5.9% 1.5% 0 0.82 80% 16,850 57
2021 295 $331M $4.6M -3.5% 1.3% 0 1.01 85% 17,422 44
2022 304 $346M $-18.0M -9.4% -5.0% 0 1.37 84% 17,282 60
2023 302 $376M $-12.3M -5.8% -3.2% 0 1.69 82% 18,507 57

Owners

OwnerRole%SinceType
Covenant Health
Knoxville, TN
5% or greater direct ownership interest 100 1996-07 chain
Amy Delong corporate officer 2024-03
James Vandersteeg corporate officer 2016-04
Joseph Dolan corporate officer 2023-07
Rick Carringer corporate officer 2026-01
Rick Carringer w-2 managing employee 2026-01
Tabitha Culbertson corporate officer 2025-04
Tabitha Culbertson w-2 managing employee 2025-04

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