dealflow
envelope $200M

← Targets

Baptist Mem Restorative Care Hosp.

dba Select Specialty Hospital-Memphis East · Memphis, Shelby County, TN · CCN 442010
Licensed to Select Specialty Hospital - Memphis, Inc.

Already transacted. CMS recorded an ownership change effective 2025-08-01. Confirm the current owner before spending a call on this.
Composite
24.9
rank score
Distress
92
FY2023
Fit
70
vs thesis
Estimated ticket
$6.3M–$25.2M
30 beds · within envelope
Ownership
nonprofit
LTCH

Why it ranks here

  • operating margin below -10%
  • total margin below -8%
  • under 30 days cash on hand
  • current ratio below 0.8
  • liabilities exceed assets
  • margin deteriorating sharply
  • part of a multi-hospital chain — divestiture candidate
  • urban — higher occupancy and iteration surface
  • LTCH — distress here is a payment-model artifact
  • small but workable bed count
  • very small ticket — sub-scale as a platform asset
  • strong occupancy — good iteration surface
  • nonprofit — expect AG conversion review
  • changed ownership 2025-08-01 — likely already transacted

Latest financials · FY2023

Net patient revenue$9.5M
Operating margin -47.4%
Total margin -47.4%
Days cash on hand 2
Current ratio 0.16
Occupancy62%

Facility

Beds30
Facility typeLTCH
Settingurban
Ownership classnonprofit
Per-bed (low) $210K
Per-bed (high) $840K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 30 $11.3M $-1.1M -13.9% -9.0% 17 0.17 66% 194 91
2021 30 $11.7M $-657K -2.0% -5.8% 18 0.18 66% 186 74
2022 30 $11.4M $-1.8M -17.3% -15.9% 8 0.19 58% 181 93
2023 30 $9.5M $-4.5M -47.4% -47.4% 2 0.16 62% 178 92

Owners

OwnerRole%SinceType
Hospital Holdings Corporation
Mechanicsburg, PA
5% or greater direct ownership interest 100 2025-08
Select Medical Corporation
Mechanicsburg, PA
5% or greater indirect ownership interest 100 2025-08 chain
Select Medical Corporation
Mechanicsburg, PA
operational/managerial control 100 2025-08 chain
Select Specialty Hospitals Inc
Mechanicsburg, PA
5% or greater indirect ownership interest 100 2025-08
John Duggan corporate officer 2025-08
John Duggan corporate director 2025-08
John Saich corporate officer 2026-04
Mary Carroll corporate officer 2026-06
Mary Carroll w-2 managing employee 2026-06
Mary Carroll operational/managerial control 2026-06
Michael Malatesta corporate officer 2025-08
Robert Breighner w-2 managing employee 2026-04
Robert Kido corporate officer 2026-04
Thomas Mullin corporate officer 2025-08
Tomeko Shugars corporate officer 2026-01
Tomeko Shugars w-2 managing employee 2026-01
Tomeko Shugars operational/managerial control 2026-01

Ownership changes

DateTypeBuyerSeller
2025-08-01 change of ownership Select Specialty Hospital -... Baptist Memorial Regional...

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
2025-08-01 Select Specialty Hospital - Memphis, Inc. Baptist Memorial Regional... Baptist Mem Restorative Care Hosp. 30
2018-01-01 Select Specialty Hospital - North... Select Specialty Hospital - Knoxville, Inc. Ssh -North Knoxville 65