dealflow
envelope $200M

← Targets

Weslaco Regional Rehabilitation Hosp

dba Weslaco Regional Rehabilitation Hospital · Weslaco, Hidalgo County, TX · CCN 453091
Licensed to Weslaco Regional Rehabilitation Hospital Llc

Composite
73.8
rank score
Distress
72
FY2023
Fit
87
vs thesis
Estimated ticket
$7.3M–$29.1M
32 beds · within envelope
Ownership
for-profit
PE 5y

Why it ranks here

  • operating margin negative
  • total margin negative
  • under 30 days cash on hand
  • current ratio below 0.8
  • debt above 85% of assets
  • occupancy 45-60%
  • margin deteriorating sharply
  • PE-owned 5 years — approaching exit window
  • TX: favorable regulatory climate
  • urban — higher occupancy and iteration surface
  • specialty facility — narrower problem scope
  • small but workable bed count
  • small ticket — deploys little of the available capital
  • moderate occupancy
  • for-profit — no charitable conversion review

Latest financials · FY2023

Net patient revenue$9.7M
Operating margin -4.8%
Total margin -0.3%
Days cash on hand 4
Current ratio 0.01
Occupancy53%

Facility

Beds32
Facility typeRH
Settingurban
Ownership classfor-profit
Per-bed (low) $228K
Per-bed (high) $910K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 40 $11.4M $1.5M 7.3% 12.6% 2 0.02 51% 528 46
2021 32 $10.4M $849K 0.4% 7.6% 0 0.01 59% 467 52
2022 32 $10.5M $-285K -3.1% -2.7% 3 0.01 62% 484 67
2023 32 $9.7M $-27.7K -4.8% -0.3% 4 0.01 53% 448 72

Owners

OwnerRole%SinceType
Epoch Acquisition Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Midco, Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Parent Holdings Llc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Ernest Health Holdings Llc
Mesquite, TX
5% or greater direct ownership interest 100 2015-02
Ernest Health, Inc
Mesquite, TX
other 100 2015-02
Truist Bank
Charlotte, NC
5% or greater security interest 62 2025-11
One Equity Partners Vii Lp
New York, NY
5% or greater indirect ownership interest 58 2018-10 PE
Epoch Parent Inc
New York, NY
5% or greater indirect ownership interest 51 2018-10
Mpt Of Weslaco, Llc
Birmingham, AL
5% or greater security interest 38 2019-01
One Equity Partners Vii-A Lp
New York, NY
5% or greater indirect ownership interest 30 2018-10 PE
One Equity Partners Vii-B Lp
New York, NY
5% or greater indirect ownership interest 12 2018-10 PE
Caleb Reed corporate officer 2023-06
Denise Kann corporate officer 2023-06
Diana Schultz w-2 managing employee 2022-08
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
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