Palms Behavioral Health
Harlingen, Cameron County, TX
· CCN 454141
Licensed to Strategic Bh-Brownsville Llc
Composite
61.8
rank score
Distress
52
FY2023
Fit
96
vs thesis
Estimated ticket
$22.0M–$87.9M
94 beds ·
within envelope
Ownership
for-profit
PH
Why it ranks here
- operating margin -10% to -5%
- under 30 days cash on hand
- current ratio below 0.8
- TX: favorable regulatory climate
- urban — higher occupancy and iteration surface
- specialty facility — narrower problem scope
- bed count in the target band
- ticket size somewhat below the envelope
- strong occupancy — good iteration surface
- for-profit — no charitable conversion review
Latest financials · FY2023
| Net patient revenue | $17.0M |
| Operating margin | -7.7% |
| Total margin | 17.0% |
| Days cash on hand | 0 |
| Current ratio | 0.74 |
| Occupancy | 71% |
Facility
| Beds | 94 |
| Facility type | PH |
| Setting | urban |
| Ownership class | for-profit |
| Per-bed (low) | $234K |
| Per-bed (high) | $935K |
Financial history
| FY | Beds | Net patient rev | Net income | Op margin | Total margin | Days cash | Current ratio | Occupancy | Discharges | Distress |
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 94 | $11.9M | $-335K | -14.1% | -2.5% | 0 | 0.59 | 56% | 2,884 | 73 |
| 2021 | 94 | $11.2M | $-536K | -17.0% | -4.3% | 0 | 0.77 | 45% | 2,664 | 78 |
| 2022 | 94 | $13.2M | $-351K | -9.5% | -2.5% | 0 | 2.30 | 51% | 2,703 | 66 |
| 2023 | 94 | $17.0M | $3.7M | -7.7% | 17.0% | 0 | 0.74 | 71% | 3,872 | 52 |
Owners
| Owner | Role | % | Since | Type |
|---|---|---|---|---|
| Brian Walton | corporate officer | 100 | 2026-03 | |
| Brian Walton | operational/managerial control | 100 | 2026-03 | |
| James Hinkle | corporate officer | 100 | 2026-03 | |
| Sbhc Holdings Llc | 5% or greater indirect ownership interest | 100 | 2021-12 | |
| Sperry Holdco Llc | 5% or greater indirect ownership interest | 100 | 2025-01 | |
| Summit Behavioral Healthcare Llc | 5% or greater indirect ownership interest | 100 | 2021-12 | |
| Summit Behavioral Holdings I Llc | 5% or greater direct ownership interest | 100 | 2021-12 | |
| Summit Behavioral Holdings Llc | 5% or greater indirect ownership interest | 100 | 2021-12 | |
| Psc Sperry Buyer Llc | 5% or greater indirect ownership interest | 96 | 2021-12 |
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.
| Date | Buyer | Seller | Hospital | Beds |
|---|---|---|---|---|
| 2020-07-01 | Lpnt Bh Acquisition 2, Llc | Srp Behavioral Hospital Of Fort Worth Llc | Wellbridge Healthcare Fort Worth | 48 |