MOUNTAIN VIEW REG MED CTR
1. Target Overview & Investment Thesis
MOUNTAIN VIEW REG MED CTR is a 166-bed suburban community hospital in DONA ANA, NM with $262.2M in net patient revenue and a 25.7% operating margin. The hospital serves a payer mix of 24.2% Medicare, 1.5% Medicaid, and 74.3% commercial.
Thesis: Turnaround. Our ML models identify $19.3M in annual EBITDA improvement potential from RCM optimization across 5 levers, lifting margin from 25.7% to 33.0% (+736bps).
| Net Revenue HCRIS | $262.2M |
| Current EBITDA COMPUTED | $67.3M |
| Operating Margin COMPUTED | 25.7% |
| Occupancy HCRIS | 69.3% |
| Revenue / Bed COMPUTED | $1.6M |
| Net-to-Gross HCRIS | 21.3% |
| Distress Probability ML | 41.6% |
2. Market Context & Competitive Position
NM has 55 Medicare-certified hospitals with a median operating margin of -2.7%. The target's margin of 25.7% places it above the state median. Among 11 size-comparable peers (83-332 beds), the median margin is 7.9%. The target performs in line with or above peers.
3. RCM Performance Analysis — Comparable Hospitals
Comps selected by bed count (83-332), prioritizing same-state peers. 11 hospitals in the comp set.
| Hospital | State | Beds | Revenue | Margin |
|---|---|---|---|---|
| MOUNTAIN VIEW REG MED CTR (Target) | NM | 166 | $262.2M | 25.7% |
| ST. VINCENT HOSPITAL | NM | 189 | $554.3M | -0.6% |
| SAN JUAN REGIONAL MEDICAL CENT | NM | 191 | $346.9M | -4.6% |
| LOVELACE MEDICAL CENTER- DOWNT | NM | 286 | $338.4M | -11.2% |
| MEMORIAL MEDICAL CENTER | NM | 199 | $322.7M | 8.7% |
| LOVELACE WOMENS HOSPITAL | NM | 162 | $198.8M | 7.9% |
| EASTERN NEW MEXICO MEDICAL CEN | NM | 120 | $117.8M | 54.3% |
| PLAINS REGIONAL MEDICAL CTR - | NM | 100 | $113.3M | -1.4% |
| LOVELACE WESTSIDE HOSPITAL | NM | 92 | $65.1M | 8.9% |
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: $19.3M (736bps margin improvement).
| Lever | Current | Target | EBITDA Impact | Margin | Ramp |
|---|---|---|---|---|---|
| Net Collection Rate | 93.5% | 97.0% | $5.5M | +210bp | 18mo |
| Cost to Collect | 4.5% | 2.5% | $5.2M | +200bp | 12mo |
| Denial Rate Reduction | 12.0% | 6.5% | $5.2M | +198bp | 12mo |
| A/R Days Reduction | 5200.0% | 3800.0% | $3.2M | +122bp | 9mo |
| Clean Claim Rate | 88.0% | 96.0% | $168K | +6bp | 6mo |
5. EBITDA Bridge
| Current EBITDA | $67.3M |
| + RCM Uplift | +$19.3M |
| Pro Forma EBITDA | $86.6M |
| Current Margin | 25.7% |
| Pro Forma Margin | 33.0% |
| WC Released (1x) | $10.1M |
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 | $103.6M | $637.1M | 6.15x | 43.8% |
| Base (11x exit) | 10.0x | 11.0x | $103.6M | $734.4M | 7.09x | 48.0% |
| Bull Case | 9.0x | 11.0x | $93.2M | $831.8M | 8.92x | 54.9% |
| Bull (12x exit) | 9.0x | 12.0x | $93.2M | $934.9M | 10.03x | 58.6% |
| Bear Case | 11.0x | 10.0x | $113.9M | $506.9M | 4.45x | 34.8% |
| Bear (11x exit) | 11.0x | 11.0x | $113.9M | $594.6M | 5.22x | 39.2% |
7. Key Risks & Mitigants
| Severity | Risk Factor | Mitigant |
|---|---|---|
| Medium | Standard execution risk | RCM improvement requires management buy-in and 12-18 month implementation timeline |
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
- 11 hospitals with 83-332 beds
- Same-state prioritization (n=12)
- Comp margins: P25=-2.7% / P50=7.9% / P75=10.5%
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.