dealflow
envelope $200M

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Mesquite Specialty Hospital

Mesquite, Dallas County, TX · CCN 452100
Licensed to Mesquite Specialty Hospital Lp

Composite
80.9
rank score
Distress
94
FY2024
Fit
80
vs thesis
Estimated ticket
$8.4M–$33.6M
40 beds · within envelope
Ownership
for-profit
PE 6y

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
  • occupancy 45-60%
  • margin deteriorating sharply
  • PE-owned 6 years — approaching exit window
  • TX: favorable regulatory climate
  • urban — higher occupancy and iteration surface
  • LTCH — distress here is a payment-model artifact
  • small but workable bed count
  • small ticket — deploys little of the available capital
  • moderate occupancy
  • for-profit — no charitable conversion review

Latest financials · FY2024

Net patient revenue$13.0M
Operating margin -28.8%
Total margin -28.4%
Days cash on hand 2
Current ratio 0.01
Occupancy52%

Facility

Beds40
Facility typeLTCH
Settingurban
Ownership classfor-profit
Per-bed (low) $210K
Per-bed (high) $840K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 40 $15.3M $-454K -8.4% -2.8% 0 0.01 61% 367 77
2022 40 $12.2M $-3.4M -28.5% -27.4% 2 0.01 45% 322 97
2023 40 $13.1M $-2.6M -25.5% -19.2% 0 0.01 49% 299 93
2024 40 $13.0M $-3.7M -28.8% -28.4% 2 0.01 52% 275 94

Owners

OwnerRole%SinceType
Epoch Acquisition Inc
New York, NY
5% or greater indirect ownership interest 99 2018-10
Epoch Midco, Inc
New York, NY
5% or greater indirect ownership interest 99 2018-10
Epoch Parent Holdings Llc
New York, NY
5% or greater indirect ownership interest 99 2018-10
Epoch Parent Inc
New York, NY
5% or greater indirect ownership interest 99 2018-10
Ernest Health Holdings Llc
Mesquite, TX
5% or greater indirect ownership interest 99 2012-02
Ernest Health, Inc
Mesquite, TX
5% or greater indirect ownership interest 99 2005-11
Mesquite Specialty Hospital Holdings, Llc
Mesquite, TX
limited partnership interest 99 2005-09
One Equity Partners Vii Lp
New York, NY
5% or greater indirect ownership interest 57 2018-10 PE
Capital One Na
Mc Lean, VA
5% or greater security interest 53 2018-10
Mpt Of Mesquite Llc
Vestavia, AL
5% or greater security interest 47 2019-01
One Equity Partners Vii-A Lp
New York, NY
5% or greater indirect ownership interest 29 2018-10 PE
One Equity Partners Vii-B Lp
New York, NY
5% or greater indirect ownership interest 12 2018-10 PE
Mesquite Specialty Hospital Management, Llc
Albuquerque, NM
general partnership interest 1 2005-09
Brenda Rowe w-2 managing employee 2022-11
Caleb Reed corporate officer 2023-06
Denise Kann corporate officer 2023-06
Eudora Cannon corporate officer 2023-06
Eudora Cannon other 2023-06
Jacob Socha corporate officer 2023-06

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 TX

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

DateBuyerSellerHospitalBeds
2026-01-01 Houston-Amg Specialty Hospital, Inc. Plaza Specialty Hospital, Llc Houston Healthcare Specialty Hosp. 44
2026-01-01 Clear Lake-Amg Specialty Hospital, Inc. Chg Hospital Houston Llc Vibra Hospital Of Clear Lake 88
2024-08-01 Hhn Tx1 Llc Kpc Promise Hospital Of Wichita Falls Llc Kpc Promise Hospital Of Wichita Fall 31
2024-05-19 Amarillo Specialty Hospital Kpc Promise Hospital Of Amarillo Llc Kpc Promise Hospital Of Amarillo Llc 54
2019-09-30 Pam Specialty Hospital Of San Antonio Llc New San Antonio Specialty Hospital, Llc Pam Spc Hosp Of San Antonio Med Ctr 62
2019-09-30 Lifecare 2.1, Llc New Lifecare Hospitals Of North Texas, Llc Lifecare Spec Hosp Of North Texas 206
2016-06-28 Knd Development 68 Llc Select Specialty Hospital - San Antonio Inc Kindred Hospital San Antonio Central 44