GLENBEIGH HEALTH SOURCES
1. Target Overview & Investment Thesis
GLENBEIGH HEALTH SOURCES is a 114-bed suburban community hospital in ASHTABULA, OH with $24.5M in net patient revenue and a 12.1% operating margin. The hospital serves a payer mix of 6.4% Medicare, 1.2% Medicaid, and 92.4% commercial.
Thesis: Turnaround. Our ML models identify $1.8M in annual EBITDA improvement potential from RCM optimization across 5 levers, lifting margin from 12.1% to 19.5% (+736bps).
| Net Revenue HCRIS | $24.5M |
| Current EBITDA COMPUTED | $3.0M |
| Operating Margin COMPUTED | 12.1% |
| Occupancy HCRIS | 53.1% |
| Revenue / Bed COMPUTED | $215K |
| Net-to-Gross HCRIS | 30.7% |
| Distress Probability ML | 47.3% |
2. Market Context & Competitive Position
OH has 235 Medicare-certified hospitals with a median operating margin of -0.3%. The target's margin of 12.1% places it above the state median. Among 100 size-comparable peers (57-228 beds), the median margin is 1.4%. The target performs in line with or above peers.
3. RCM Performance Analysis — Comparable Hospitals
Comps selected by bed count (57-228), prioritizing same-state peers. 100 hospitals in the comp set.
| Hospital | State | Beds | Revenue | Margin |
|---|---|---|---|---|
| GLENBEIGH HEALTH SOURCES (Target) | OH | 114 | $24.5M | 12.1% |
| DAYTON CHILDRENS HOSPITAL | OH | 181 | $569.1M | 7.9% |
| MARIETTA MEMORIAL HOSPITAL | OH | 188 | $475.8M | -12.4% |
| ADENA REGIONAL MEDICAL CENTER | OH | 209 | $470.7M | 3.5% |
| SOUTHERN OHIO MEDICAL CENTER | OH | 192 | $424.3M | -4.9% |
| SOUTHWEST GENERAL HEALTH CENTE | OH | 191 | $406.9M | 2.5% |
| MARION GENERAL HOSPITAL | OH | 177 | $365.7M | 35.5% |
| DUBLIN METHODIST HOSPITAL | OH | 110 | $333.9M | 28.4% |
| JEWISH HOSPITAL OF CINCINNATI | OH | 170 | $333.6M | -5.9% |
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: $1.8M (736bps margin improvement).
| Lever | Current | Target | EBITDA Impact | Margin | Ramp |
|---|---|---|---|---|---|
| Net Collection Rate | 93.5% | 97.0% | $515K | +210bp | 18mo |
| Cost to Collect | 4.5% | 2.5% | $491K | +200bp | 12mo |
| Denial Rate Reduction | 12.0% | 6.5% | $486K | +198bp | 12mo |
| A/R Days Reduction | 5200.0% | 3800.0% | $299K | +122bp | 9mo |
| Clean Claim Rate | 88.0% | 96.0% | $16K | +6bp | 6mo |
5. EBITDA Bridge
| Current EBITDA | $3.0M |
| + RCM Uplift | +$1.8M |
| Pro Forma EBITDA | $4.8M |
| Current Margin | 12.1% |
| Pro Forma Margin | 19.5% |
| WC Released (1x) | $941K |
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 | $4.6M | $37.7M | 8.23x | 52.4% |
| Base (11x exit) | 10.0x | 11.0x | $4.6M | $43.0M | 9.38x | 56.5% |
| Bull Case | 9.0x | 11.0x | $4.1M | $50.4M | 12.23x | 65.0% |
| Bull (12x exit) | 9.0x | 12.0x | $4.1M | $56.2M | 13.64x | 68.6% |
| Bear Case | 11.0x | 10.0x | $5.0M | $27.2M | 5.40x | 40.1% |
| Bear (11x exit) | 11.0x | 11.0x | $5.0M | $31.5M | 6.26x | 44.3% |
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
- 100 hospitals with 57-228 beds
- Same-state prioritization (n=101)
- Comp margins: P25=-12.5% / P50=1.4% / P75=8.0%
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.