dealflow
envelope $200M

← Targets

Covenant Medical Center

Lubbock, Lubbock County, TX · CCN 450040
Licensed to Covenant Medical Center

Composite
63.8
rank score
Distress
71
FY2024
Fit
75
vs thesis
Estimated ticket
$31.6M–$63.3M
452 beds · within envelope
Ownership
nonprofit
STH

Why it ranks here

  • operating margin below -10%
  • total margin -8% to -3%
  • under 30 days cash on hand
  • current ratio below 0.8
  • margin slipping
  • part of a multi-hospital chain — divestiture candidate
  • TX: favorable regulatory climate
  • rural — cheaper but limited density
  • very large — likely out of range
  • ticket size somewhat below the envelope
  • strong occupancy — good iteration surface
  • nonprofit — expect AG conversion review

Latest financials · FY2024

Net patient revenue$505M
Operating margin -16.0%
Total margin -7.2%
Days cash on hand 0
Current ratio 0.70
Occupancy61%

Facility

Beds452
Facility typeSTH
Settingrural
Ownership classnonprofit
Per-bed (low) $70.0K
Per-bed (high) $140K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 380 $415M $-33.6M -24.3% -6.9% 14 -0.57 70% 14,879 76
2022 379 $380M $-100M -39.2% -23.4% 0 -0.10 57% 11,474 82
2023 360 $438M $-51.6M -23.9% -10.5% 203 9.43 65% 13,972 44
2024 452 $505M $-39.2M -16.0% -7.2% 0 0.70 61% 15,895 71

Owners

OwnerRole%SinceType
Covenant Health System
Lubbock, TX
5% or greater direct ownership interest 100 2019-01 chain
Lubbock Methodist Hospital System
Lubbock, TX
other 43 2019-01
Adam Purtell corporate director 2026-01
Amy Thompson corporate officer 2023-10
Amy Thompson corporate director 2023-10
Anthony Fogerson corporate director 2024-01
Chad Wheeler corporate director 2023-01
David Shephard corporate director 2025-01
Donald Anderson corporate officer 2020-09
Dyana Kerr w-2 managing employee 2023-03
Ely Perea w-2 managing employee 2025-01
Gregory Hoffman corporate officer 2023-01
Jennifer Bryan corporate officer 2023-10
Jesus Mendoza corporate director 2023-01
John Osborne corporate director 2026-01
Kathleen Burrell corporate officer 2023-03
Katie Hendley corporate director 2025-09
Keino Mcwhinney corporate director 2023-01
Nicki Colbert corporate director 2025-01
Providence Health & Services - Washington
Renton, WA
operational/managerial control 2020-08
Providence St. Joseph Health
Renton, WA
other 2019-01
St. Joseph Health System
Irvine, CA
other 2019-01

Ownership changes

DateTypeBuyerSeller
2019-01-01 change of ownership Covenant Medical Center Covenant Health System

Who has been buying in TX

Completed CMS ownership changes in this state. These buyers already cleared the licensure process here — and whoever advised them knows this market.

DateBuyerSellerHospitalBeds
2025-02-01 Texas Heart Hospital Of The Southwest Llc Baylor Heart & Vascular Center Llp Baylor Heart And Vascular Hospital 56
2024-10-30 Hsa Port Arthur, Llc The Medical Center Of Southeast Texas Lp The Medical Ctr Of Southeast Texas 196
2024-10-30 Hsa St. Joseph, Llc Sj Medical Center Llc St Joseph Medical Center 156
2024-10-17 Big Spring Texas Hospital Company Llc Steward Texas Hospital Holdings Llc Scenic Mountain Medical Center 75
2024-10-17 Odessa Texas Hospital Company Llc Odessa Regional Hospital Lp Odessa Regional Hospital 208
2024-06-01 Columbia Medical Center Of Denton... Decatur Health Services Llc Medical City Denton 184
2024-03-11 Nacogdoches County Hospital District Lion Star Nacogdoches Hospital, Llc Nacogdoches Memorial Hosp 160
2024-01-01 Ahs Sherman Llc Sherman Grayson Hospital Llc Wilson N Jones Regional Medical Ctr 214
2023-04-01 Methodist Healthcare System Of San... Hill Country Memorial Hospital Hill Country Memorial Hospital 57
2021-06-01 Methodist Hospitals Of Dallas Metsl, Llc Methodist Southlake Medical Center 22
2020-10-27 Hendrick Medical Center Armc Lp Hendrick Medical Center 533
2020-10-27 Hendrick Medical Center Brownwood Brownwood Hospital Lp Hendrick Medical Center Brownwood 63
2020-07-01 St Joseph Regional Health Center St Joseph Regional Health Center St. Joseph Regional Health Center 284
2020-04-01 Christus Santa Rosa Health Care Corporation Adventist Health System/sunbelt, Inc. Christus Santa Rosa - San Marcos 105
2020-03-01 Sana Healthcare Carrollton Baylor Medical Center At Carrollton Carrollton Regional Medical Center 89