dealflow
envelope $200M

← Targets

Mesquite Rehabilitation Institute

Mesquite, Dallas County, TX · CCN 673045
Licensed to Rehabilitation Hospital Of Mesquite Llc

Composite
65.1
rank score
Distress
46
FY2023
Fit
90
vs thesis
Estimated ticket
$9.8M–$39.0M
30 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 70% of assets
  • margin deteriorating sharply
  • PE-owned 5 years — approaching exit window
  • part of a multi-hospital chain — divestiture candidate
  • 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$16.8M
Operating margin 18.1%
Total margin 18.1%
Days cash on hand 1
Current ratio 0.01
Occupancy89%

Facility

Beds30
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 30 $12.1M $3.6M 23.6% 28.2% 0 0.02 71% 519 40
2021 30 $14.1M $2.7M 15.0% 18.6% 0 0.01 78% 572 40
2022 30 $15.1M $2.0M 13.4% 13.5% 1 0.01 83% 577 40
2023 30 $16.8M $3.0M 18.1% 18.1% 1 0.01 89% 628 46

Owners

OwnerRole%SinceType
Epoch Acquisition Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Midco, Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Parent Holdings Llc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Epoch Parent Inc
New York, NY
5% or greater indirect ownership interest 100 2018-10
Ernest Health Holdings Llc
Mesquite, TX
5% or greater indirect ownership interest 100 2009-12
Ernest Health, Inc
Mesquite, TX
5% or greater direct ownership interest 100 2009-12 chain
Truist Bank
Charlotte, NC
5% or greater security interest 96 2025-11
One Equity Partners Vii Lp
New York, NY
5% or greater indirect ownership interest 58 2018-10 PE
One Equity Partners Vii-A Lp
New York, NY
5% or greater indirect ownership interest 30 2018-10 PE
One Equity Partners Vii-B Lp
New York, NY
5% or greater indirect ownership interest 12 2018-10 PE
Mpt Of Mesquite Llc
Vestavia, AL
5% or greater security interest 4 2019-01
Brenda Rowe w-2 managing employee 2022-11
Caleb Reed corporate officer 2023-06
Denise Kann corporate officer 2023-06
Eudora Cannon corporate officer 2023-06
Eudora Cannon other 2023-06
Jacob Socha corporate officer 2023-06

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