dealflow
envelope $200M

← Targets

Patricia Neal Rehabilitation Hospita

dba Patricia Neal Rehabilitation Hospital · Knoxville, Knox County, TN · CCN 443039
Licensed to Rehabilitation Hospital Of Knox County, Llc

Composite
73.9
rank score
Distress
80
FY2024
Fit
90
vs thesis
Estimated ticket
$16.6M–$66.4M
73 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • operating margin below -10%
  • total margin below -8%
  • under 30 days cash on hand
  • current ratio below 0.8
  • part of a multi-hospital chain — divestiture candidate
  • urban — higher occupancy and iteration surface
  • specialty facility — narrower problem scope
  • bed count in the target band
  • ticket size somewhat below the envelope
  • strong occupancy — good iteration surface
  • for-profit — no charitable conversion review

Latest financials · FY2024

Net patient revenue$31.1M
Operating margin -22.5%
Total margin -22.0%
Days cash on hand 0
Current ratio -1.51
Occupancy65%

Facility

Beds73
Facility typeRH
Settingurban
Ownership classfor-profit
Per-bed (low) $228K
Per-bed (high) $910K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2024 73 $31.1M $-6.9M -22.5% -22.0% 0 -1.51 65% 1,851 80

Owners

OwnerRole%SinceType
Covenant Health
Knoxville, TN
5% or greater indirect ownership interest 50 2020-04
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 50 2020-04 chain
Encompass Health Joint Ventures Holdings, Llc
Birmingham, AL
5% or greater indirect ownership interest 50 2020-04
Encompass Health Knoxville Holdings, Llc
Birmingham, AL
5% or greater direct ownership interest 50 2020-04
Fortress Corporation & Subsidiaries
Knoxville, TN
5% or greater direct ownership interest 50 2020-04
Vanguard Group Inc
Malvern, PA
5% or greater indirect ownership interest 10 2023-12
Carey Mcrae corporate officer 2025-01
Encompass Health Corporation
Birmingham, AL
operational/managerial control 2020-04 chain
Jennifer Steely w-2 managing employee 2021-01
Mark Tarr operational/managerial control 2020-04
Robert Mccallum corporate officer 2024-10

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
2017-07-01 West Tennessee Rehabilitation Hospital, Llc Rebound Llc West Tennessee Healthcare Rehabilita 40