dealflow
envelope $200M

← Targets

Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of Dallas · Dallas, Dallas County, TX · CCN 673043
Licensed to Encompass Health Rehabilitation Hospital Of Dallas, Llc

Composite
53.8
rank score
Distress
30
FY2024
Fit
96
vs thesis
Estimated ticket
$19.5M–$78.0M
60 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • operating margin negative
  • 60-90 days cash on hand
  • debt above 70% of assets
  • margin slipping
  • part of a multi-hospital chain — divestiture candidate
  • 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 · FY2024

Net patient revenue$31.1M
Operating margin -1.8%
Total margin 4.6%
Days cash on hand 78
Current ratio 2.95
Occupancy84%

Facility

Beds60
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
2021 60 $30.2M $1.8M 2.9% 5.7% 35 2.11 87% 1,411 24
2022 60 $30.0M $1.1M -1.7% 3.6% 61 2.21 82% 1,428 33
2023 60 $30.6M $-52.9K -5.2% -0.2% 43 2.43 88% 1,455 54
2024 60 $31.1M $1.5M -1.8% 4.6% 78 2.95 84% 1,407 30

Owners

OwnerRole%SinceType
Encompass Health Acquisition Holdings Llc
Birmingham, AL
5% or greater indirect ownership interest 100 2015-10
Encompass Health Acquisition Holdings Subsidiary, Llc
Birmingham, AL
5% or greater direct ownership interest 100 2015-10
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 100 2015-10 chain
Encompass Health Owned Hospitals Holdings Llc
Birmingham, AL
5% or greater indirect ownership interest 100 2015-10
Truist Bank
Charlotte, NC
5% or greater security interest 100 2026-03
Reliant Blocker Corporation
Birmingham, AL
5% or greater indirect ownership interest 15 2015-10
Vanguard Group Inc
Malvern, PA
5% or greater indirect ownership interest 10 2023-12
Blackrock Inc
New York, NY
5% or greater indirect ownership interest 9 2023-12
Carey Mcrae operational/managerial control 2025-01
Carey Mcrae other 2025-01
Encompass Health Corporation
Birmingham, AL
operational/managerial control 2015-10 chain
Mark Tarr operational/managerial control 2017-01
Robert Mccallum operational/managerial control 2025-01
Robert Mccallum other 2025-01
Sharon Curtis w-2 managing employee 2022-08

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