dealflow
envelope $200M

← Targets

Sun Behavioral Houston

Houston, TX · CCN 454139
Licensed to Sun Houston Llc

Composite
63.0
rank score
Distress
51
FY2023
Fit
100
vs thesis
Estimated ticket
$34.6M–$138M
148 beds · within envelope
Ownership
for-profit
PH

Why it ranks here

  • operating margin under 2%
  • total margin under 2%
  • under 30 days cash on hand
  • current ratio below 0.8
  • liabilities exceed assets
  • 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 · FY2023

Net patient revenue$34.5M
Operating margin 1.0%
Total margin 1.1%
Days cash on hand 0
Current ratio 0.29
Occupancy81%

Facility

Beds148
Facility typePH
Settingurban
Ownership classfor-profit
Per-bed (low) $234K
Per-bed (high) $935K

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 148 $22.6M $-1.3M -6.6% -5.8% 76 0.35 64% 4,243 69
2021 148 $26.2M $5.1M -1.7% 16.1% 24 0.35 68% 4,584 62
2022 148 $28.7M $-1.6M -5.8% -5.7% 23 0.30 70% 4,686 81
2023 148 $34.5M $387K 1.0% 1.1% 0 0.29 81% 5,364 51

Owners

OwnerRole%SinceType
Sun Behavioral Health Inc
Red Bank, NJ
5% or greater direct ownership interest 100 2015-07
Brennan Francois corporate officer 50 2020-02
Brennan Francois corporate director 50 2020-02
Brennan Francois w-2 managing employee 50 2020-02
Ricardo Villanueva corporate officer 50 2018-01
Ricardo Villanueva corporate director 50 2018-01
Ricardo Villanueva w-2 managing employee 50 2018-01

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