dealflow
envelope $200M

← Targets

Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of Austin · Austin, Travis County, TX · CCN 673054
Licensed to Encompass Health Rehabilitation Hospital Of Austin, Llc

Composite
67.7
rank score
Distress
61
FY2023
Fit
96
vs thesis
Estimated ticket
$16.6M–$66.3M
60 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • operating margin -10% to -5%
  • total margin negative
  • under 30 days cash on hand
  • current liabilities exceed current assets
  • margin deteriorating
  • 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 · FY2023

Net patient revenue$26.2M
Operating margin -7.8%
Total margin -0.8%
Days cash on hand 4
Current ratio 0.86
Occupancy67%

Facility

Beds60
Facility typeRH
Settingurban
Ownership classfor-profit
Per-bed (low) $276K
Per-bed (high) $1.1M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2020 60 $20.8M $332K -4.0% 1.5% 78 1.92 59% 1,051 31
2021 60 $26.9M $2.2M 6.5% 8.2% 53 2.18 70% 1,262 17
2022 60 $25.7M $107K -4.8% 0.4% 31 1.57 67% 1,193 36
2023 60 $26.2M $-218K -7.8% -0.8% 4 0.86 67% 1,160 61

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
Lauren Suarez w-2 managing employee 2020-06
Mark Tarr operational/managerial control 2017-01
Robert Mccallum operational/managerial control 2025-01
Robert Mccallum other 2025-01

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
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