dealflow
envelope $200M

← Targets

Covenant Specialty Hospital

Lubbock, Lubbock County, TX · CCN 452102
Licensed to Covenant Long-Term Care Llc

Composite
65.4
rank score
Distress
78
FY2024
Fit
71
vs thesis
Estimated ticket
$11.8M–$47.0M
56 beds · within envelope
Ownership
for-profit
LTCH

Why it ranks here

  • operating margin below -10%
  • total margin below -8%
  • under 30 days cash on hand
  • occupancy below 30%
  • margin deteriorating sharply
  • part of a multi-hospital chain — divestiture candidate
  • TX: favorable regulatory climate
  • urban — higher occupancy and iteration surface
  • LTCH — distress here is a payment-model artifact
  • bed count in the target band
  • small ticket — deploys little of the available capital
  • very low occupancy — limited volume to learn from
  • for-profit — no charitable conversion review

Latest financials · FY2024

Net patient revenue$8.8M
Operating margin -56.7%
Total margin -56.6%
Days cash on hand 11
Current ratio 6.45
Occupancy21%

Facility

Beds56
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 56 $19.1M $1.6M 12.5% 8.5% 185 2.47 49% 382 2
2022 56 $13.4M $-4.2K -8.5% -0.0% 95 1.88 33% 253 40
2023 56 $14.9M $1.7M 10.0% 11.2% 129 9.52 29% 230 13
2024 56 $8.8M $-5.0M -56.7% -56.6% 11 6.45 21% 173 78

Owners

OwnerRole%SinceType
Covenant Health System
Lubbock, TX
5% or greater direct ownership interest 100 2022-09
St. Joseph Health System
Irvine, CA
other 57 1999-04 chain
Lubbock Methodist Hospital System
Lubbock, TX
other 43 1999-04
Adam Purtell corporate director 2026-01
Amy Thompson corporate officer 2025-01
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 2023-09
Gregory Hoffman corporate officer 2023-09
Jamie White w-2 managing employee 2025-02
Jennifer Bryan corporate officer 2023-10
Jesus Mendoza corporate director 2023-01
John Osborne corporate director 2026-01
Julie Bell w-2 managing employee 2009-11
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 2016-07

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