dealflow
envelope $200M

← Targets

Rusk State Hospital

Rusk, Cherokee County, TX · CCN 454009
Licensed to Health And Human Services Commission

Composite
74.1
rank score
Distress
82
FY2024
Fit
93
vs thesis
Estimated ticket
$55.8M–$223M
290 beds · within envelope
Ownership
government
PH

Why it ranks here

  • operating margin below -10%
  • total margin below -8%
  • under 30 days cash on hand
  • current ratio below 0.8
  • margin deteriorating sharply
  • TX: favorable regulatory climate
  • urban — higher occupancy and iteration surface
  • specialty facility — narrower problem scope
  • large — ticket likely stretches the envelope
  • ticket size uses the capital envelope well
  • strong occupancy — good iteration surface
  • government-owned — public process likely

Latest financials · FY2024

Net patient revenue$74.4M
Operating margin -23.9%
Total margin -123.9%
Days cash on hand 0
Current ratio -83.96
Occupancy82%

Facility

Beds290
Facility typePH
Settingurban
Ownership classgovernment
Per-bed (low) $192K
Per-bed (high) $770K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 259 $57.3M $-62.7M -9.4% -109.4% 0 -83.43 88% 154 74
2022 259 $45.7M $-60.9M -33.2% 0 -104.37 71% 118 76
2023 361 $43.7M $-73.5M -68.0% 0 -76.03 47% 90 79
2024 290 $74.4M $-92.2M -23.9% -123.9% 0 -83.96 82% 192 82

Owners

OwnerRole%SinceType
Health And Human Services Commission
Rusk, TX
operational/managerial control 2017-09
Kristy Carr operational/managerial control 2023-01
Michelle Foster w-2 managing employee 2019-03

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
2020-07-01 Lpnt Bh Acquisition 2, Llc Srp Behavioral Hospital Of Fort Worth Llc Wellbridge Healthcare Fort Worth 48