MOUNTAIN VIEW HOSPITAL
1. Target Overview & Investment Thesis
MOUNTAIN VIEW HOSPITAL is a 363-bed suburban community hospital in CLARK, NV with $583.9M in net patient revenue and a 12.7% operating margin. The hospital serves a payer mix of 25.1% Medicare, 8.5% Medicaid, and 66.4% commercial.
Thesis: Platform Growth. Our ML models identify $43.0M in annual EBITDA improvement potential from RCM optimization across 5 levers, lifting margin from 12.7% to 20.1% (+736bps).
| Net Revenue HCRIS | $583.9M |
| Current EBITDA COMPUTED | $74.2M |
| Operating Margin COMPUTED | 12.7% |
| Occupancy HCRIS | 97.7% |
| Revenue / Bed COMPUTED | $1.6M |
| Net-to-Gross HCRIS | 9.7% |
| Distress Probability ML | 36.4% |
2. Market Context & Competitive Position
NV has 58 Medicare-certified hospitals with a median operating margin of 0.4%. The target's margin of 12.7% places it above the state median. Among 13 size-comparable peers (182-726 beds), the median margin is -1.5%. The target performs in line with or above peers.
3. RCM Performance Analysis — Comparable Hospitals
Comps selected by bed count (182-726), prioritizing same-state peers. 13 hospitals in the comp set.
| Hospital | State | Beds | Revenue | Margin |
|---|---|---|---|---|
| MOUNTAIN VIEW HOSPITAL (Target) | NV | 363 | $583.9M | 12.7% |
| UNIVERSITY MEDICAL CENTER | NV | 537 | $849.0M | -1.5% |
| ST. ROSE DOMINICAN - SIENA | NV | 326 | $496.0M | -3.6% |
| RENOWN REGIONAL MEDICAL CENTER | NV | 558 | $487.8M | -2.7% |
| SUMMERLIN HOSPITAL MEDICAL CEN | NV | 391 | $449.9M | 16.9% |
| SPRING VALLEY HOSPITAL MEDICAL | NV | 301 | $397.8M | 8.4% |
| HENDERSON HOSPITAL | NV | 288 | $358.3M | 21.5% |
| CENTENNIAL HILLS HOSPITAL | NV | 326 | $318.5M | 10.2% |
| SOUTHERN HILLS HOSPITAL & MEDI | NV | 205 | $317.7M | 11.7% |
4. Predicted Improvement Opportunities
Improvement targets set at P75 of comparable peers with 60% gap closure assumption. Coefficients calibrated to published research bands. Total EBITDA uplift: $43.0M (736bps margin improvement).
| Lever | Current | Target | EBITDA Impact | Margin | Ramp |
|---|---|---|---|---|---|
| Net Collection Rate | 93.5% | 97.0% | $12.3M | +210bp | 18mo |
| Cost to Collect | 4.5% | 2.5% | $11.7M | +200bp | 12mo |
| Denial Rate Reduction | 12.0% | 6.5% | $11.6M | +198bp | 12mo |
| A/R Days Reduction | 5200.0% | 3800.0% | $7.1M | +122bp | 9mo |
| Clean Claim Rate | 88.0% | 96.0% | $374K | +6bp | 6mo |
5. EBITDA Bridge
| Current EBITDA | $74.2M |
| + RCM Uplift | +$43.0M |
| Pro Forma EBITDA | $117.2M |
| Current Margin | 12.7% |
| Pro Forma Margin | 20.1% |
| WC Released (1x) | $22.4M |
6. Returns Analysis — Scenario Matrix
5-year hold, 5.5x leverage, 3% organic growth, 10%/yr debt paydown. Base case uses 100% of predicted RCM uplift. Bull case: 130% uplift at lower entry. Bear case: 50% uplift at higher entry.
| Scenario | Entry | Exit | Equity In | Equity Out | MOIC | IRR |
|---|---|---|---|---|---|---|
| Base Case | 10.0x | 10.0x | $114.1M | $919.1M | 8.05x | 51.8% |
| Base (11x exit) | 10.0x | 11.0x | $114.1M | $1.05B | 9.18x | 55.8% |
| Bull Case | 9.0x | 11.0x | $102.7M | $1.23B | 11.95x | 64.2% |
| Bull (12x exit) | 9.0x | 12.0x | $102.7M | $1.37B | 13.33x | 67.9% |
| Bear Case | 11.0x | 10.0x | $125.5M | $667.1M | 5.31x | 39.7% |
| Bear (11x exit) | 11.0x | 11.0x | $125.5M | $774.6M | 6.17x | 43.9% |
7. Key Risks & Mitigants
| Severity | Risk Factor | Mitigant |
|---|---|---|
| Low | Low net-to-gross ratio | Large contractual allowances suggest pricing discipline issues. Mitigant: payer renegotiation is an additional upside lever |
8. Data Sources & Methodology Appendix
Data Sources
- CMS HCRIS Cost Reports (Medicare-certified hospitals)
- CMS Medicare Utilization (DRG-level volumes)
- CMS Chronic Conditions (county-level disease prevalence)
- HCRIS multi-year trend data (financial time series)
Comparable Selection
- 13 hospitals with 182-726 beds
- Same-state prioritization (n=14)
- Comp margins: P25=-26.7% / P50=-1.5% / P75=10.2%
Bridge Methodology
- Targets: P75 of comparable peers (60% gap closure)
- Denial: avoidable share = 35% of delta × NPR
- AR: bad debt coefficient = $0.65 per day per $1K NPR
- NCR: 60% coefficient on collection rate improvement
- CDI: 0.75% of Medicare revenue per 0.01 CMI point
Returns Assumptions
- Leverage: 5.5x entry (84.6% debt / 15.4% equity)
- Organic growth: 3% annual EBITDA growth
- Debt paydown: 10% of principal per year
- Hold period: 5 years
Generated by SeekingChartis on April 26, 2026. All predictions use public data only. Confidence intervals calibrated via split conformal prediction (90% coverage target). This memo is for informational purposes and does not constitute investment advice.