dealflow
envelope $200M

← Targets

East Tennessee Behavioral Health

Knoxville, Knox County, TN · CCN 444032
Licensed to Dowell Springs Behavioral Health, Llc

Composite
67.5
rank score
Distress
73
FY2024
Fit
82
vs thesis
Estimated ticket
$17.3M–$69.3M
90 beds · within envelope
Ownership
for-profit
PH

Why it ranks here

  • operating margin below -10%
  • total margin below -8%
  • under 30 days cash on hand
  • current liabilities exceed current assets
  • occupancy 30-45%
  • 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
  • thin occupancy
  • for-profit — no charitable conversion review

Latest financials · FY2024

Net patient revenue$12.5M
Operating margin -68.8%
Total margin -68.7%
Days cash on hand 0
Current ratio 0.84
Occupancy42%

Facility

Beds90
Facility typePH
Settingurban
Ownership classfor-profit
Per-bed (low) $192K
Per-bed (high) $770K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2023 90 $4.5M $-8.6M -191.5% -191.5% 0 1.98 28% 927 76
2024 90 $12.5M $-8.6M -68.8% -68.7% 0 0.84 42% 1,860 73

Owners

OwnerRole%SinceType
Acadia Healthcare Company Inc
Franklin, TN
5% or greater indirect ownership interest 100 2019-02 chain
Acadia Jv Holdings Llc
Franklin, TN
5% or greater indirect ownership interest 100 2019-02
Acadia Knoxville Holdings, Llc
Franklin, TN
5% or greater direct ownership interest 70 2019-02
Fortress Corporation & Subsidiaries
Knoxville, TN
5% or greater direct ownership interest 30 2019-02
Brian Farley corporate officer 2023-07
Deborah Kraemer w-2 managing employee 2022-04
Debra Osteen corporate officer 2026-01
Kelly George w-2 managing employee 2023-07
Stacie Harty w-2 managing employee 2022-04
Timothy Sides w-2 managing employee 2023-06
Todd Young corporate officer 2025-10

Ownership changes

No CMS ownership change on record since 2016 — this hospital has not traded in at least a decade.