dealflow
envelope $200M

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Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of Midland Odessa · Midland, Midland County, TX · CCN 453057
Licensed to Encompass Health Rehabilitation Hospital Of Midland Odessa, Llc

Composite
53.0
rank score
Distress
29
FY2024
Fit
100
vs thesis
Estimated ticket
$34.5M–$138M
106 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • under 30 days cash on hand
  • current ratio under 1.5
  • margin deteriorating
  • TX: favorable regulatory climate
  • urban — higher occupancy and iteration surface
  • specialty facility — narrower problem scope
  • bed count in the target band
  • ticket size uses the capital envelope well
  • strong occupancy — good iteration surface
  • for-profit — no charitable conversion review

Latest financials · FY2024

Net patient revenue$46.0M
Operating margin 6.4%
Total margin 6.7%
Days cash on hand 29
Current ratio 1.50
Occupancy75%

Facility

Beds106
Facility typeRH
Settingurban
Ownership classfor-profit
Per-bed (low) $325K
Per-bed (high) $1.3M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 80 $32.6M $4.2M 12.8% 12.9% 55 1.60 69% 1,565 21
2021 80 $38.4M $4.5M 11.6% 11.7% 9 1.38 85% 1,912 26
2022 80 $26.2M $3.1M 11.7% 11.9% 58 2.00 89% 1,327 17
2023 106 $40.7M $3.6M 8.4% 8.7% 33 1.68 85% 2,135 17
2024 106 $46.0M $3.1M 6.4% 6.7% 29 1.50 75% 2,355 29

Owners

OwnerRole%SinceType
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 65 2022-02
Encompass Health Joint Ventures Holdings, Llc
Birmingham, AL
5% or greater indirect ownership interest 65 2021-07
Healthsouth Midland Odessa Holdings, Llc
Birmingham, AL
5% or greater direct ownership interest 65 2016-06
Midland County Hospital District
Midland, TX
5% or greater indirect ownership interest 18 2021-07
Midland Memorial, Inc
Midland, TX
5% or greater direct ownership interest 18 2021-07
Echd Ventures
Odessa, TX
5% or greater direct ownership interest 17 2021-07
Ector County Hospital District
Odessa, TX
5% or greater indirect ownership interest 17 2021-07
Vanguard Group Inc
Malvern, PA
5% or greater indirect ownership interest 7 2024-12
Blackrock Inc
New York, NY
5% or greater indirect ownership interest 6 2024-12
Carey Mcrae corporate officer 2025-01
Douglas Coltharp corporate officer 2010-05
Encompass Health Corporation
Birmingham, AL
operational/managerial control 2013-10
Mark Tarr operational/managerial control 2017-01
Robert Mccallum corporate officer 2025-01
Shannon Cortez w-2 managing employee 2025-01

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
2023-03-01 Crh Of Temple Llc Everest Rehabilitation Hospital Temple Llc Temple Rehabilitation Hospital 36
2023-03-01 Crh Of Longview Llc Everest Rehabilitation Hospital... Longview Rehabilitation Hospital 36
2021-12-30 Pam Health Rehabilitation Hospital... Apollo Rehab Hospital Llc Pam Health Rehab Hosp Of Sugar Land 41
2019-08-01 Clear Lake Institute For Rehabilitation Llc Clear Lake Rehabilitation Hospital, Llc Bay Area Rehab Hospital 151
2019-08-01 Clear Lake Institute For Rehabilitation Llc Triumph Rehabilitation Hospital Of... Bay Area Rehab Hospital 151
2016-06-01 Pam Squared At Beaumont Llc Healthsouth Rehabilitation... Pam Squared At Beaumont 61