dealflow
envelope $200M

← Targets

South Texas Rehabilitation Hospital

Brownsville, Cameron County, TX · CCN 453092
Licensed to South Texas Rehabilitation Hospital Lp

Composite
60.1
rank score
Distress
39
FY2023
Fit
90
vs thesis
Estimated ticket
$13.0M–$52.0M
40 beds · within envelope
Ownership
for-profit
PE 5y

Why it ranks here

  • under 30 days cash on hand
  • current ratio below 0.8
  • debt above 85% of assets
  • 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
  • strong occupancy — good iteration surface
  • for-profit — no charitable conversion review

Latest financials · FY2023

Net patient revenue$16.6M
Operating margin 5.1%
Total margin 6.5%
Days cash on hand 1
Current ratio 0.01
Occupancy72%

Facility

Beds40
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 40 $13.9M $-191K -12.2% -1.2% 2 0.01 62% 612 79
2021 40 $15.8M $2.8M 10.5% 16.5% 8 0.01 68% 633 43
2022 40 $16.6M $1.3M 7.2% 7.7% 6 0.01 70% 700 43
2023 40 $16.6M $1.1M 5.1% 6.5% 1 0.01 72% 693 39

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 2004-09
South Texas Rehabilitation Hospital Holdings Llc
Mesquite, TX
limited partnership interest 99 2004-08
Truist Bank
Charlotte, NC
5% or greater security interest 64 2025-11
One Equity Partners Vii Lp
New York, NY
5% or greater indirect ownership interest 57 2018-10 PE
Mpt Of Brownsville, Llc
Birmingham, AL
5% or greater security interest 36 2020-12
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
South Texas Rehabilitation Hospital Management Llc
Mesquite, TX
general partnership interest 1 2004-08
Caleb Reed corporate officer 2023-06
Denise Kann corporate officer 2023-06
Ernest Health, Inc
Mesquite, TX
other 2004-09
Eudora Cannon corporate officer 2023-06
Eudora Cannon other 2023-06
Jacob Socha corporate officer 2023-06
Leo Garza w-2 managing employee 2014-02

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