Reference documentation for the metrics, formulas, and data sources used across the platform.
◈ Valuation Models
DCF Model
Financial ModelProjects free cash flow using deal profile inputs. Builds a WACC x terminal growth sensitivity table. Requires: net_revenue, ebitda_margin, capex_pct, working_capital_change.
Select a deal to run →LBO Model
Financial ModelFull leveraged buyout model with senior + mezzanine debt, annual P&L projection, mandatory/optional repayment schedule, and equity returns at multiple exit timings.
Select a deal to run →3-Statement Model
Financial ModelReconstructs full financial statements from HCRIS cost report data and deal profile. Every line item tagged with source provenance (HCRIS, deal_profile, benchmark, computed).
Select a deal to run →EBITDA Bridge
AnalysisModels denial reduction, AR acceleration, coding uplift, payer mix optimization, cost-to-collect reduction, clean claim improvement, and volume/rate growth. Each lever has a probability-weighted impact.
Select a deal to run →☀ Market Intelligence
Market Analysis
MarketAnalyzes the regional market using HCRIS peer data. Computes HHI, market share rank, top-3 concentration, scale advantage, switching costs, and network density. Moat scored 0-10 (wide/narrow/none).
Select a deal to run →State Heatmap
MarketAggregates HCRIS data by state with color-coded heatmap on selectable metrics (margin, HHI, Medicare %, bed count). Includes OLS regression showing which state-level factors predict hospital margins.
Open →Hospital Screener
Screener5 predefined screens (value, turnaround, large cap, small cap, margin expansion) plus custom filter builder. Returns ranked results with SeekingChartis Score for each match.
Open →Denial Driver Analysis
OperationalIdentifies top denial drivers (prior auth, coding errors, timely filing, medical necessity, eligibility) with estimated annual dollar impact. Includes expert recommendation database per driver category.
Select a deal to run →▦ Quantitative Tools
Monte Carlo Simulation
QuantitativeTwo-source MC: (1) kernel density from calibrated priors, (2) Ridge predictor with conformal prediction intervals. Returns P10/P50/P90 outcomes, probability of downside, and VaR.
Select a deal to run →OLS Regression
QuantitativeOrdinary least squares with t-statistics, p-values, significance flags, correlation matrix, and top correlated pairs. Numpy-only implementation (no sklearn). Can target any metric against any feature set.
Open →Pressure Test
RiskApplies payer rate shocks, volume declines, and regulatory changes to test deal resilience. Generates risk flags with severity scoring and auto-generated diligence questions.
Select a deal to run →Scenario Builder
QuantitativePreset scenarios: Commercial IDR +20%, Medicare RAC Storm, Labor Crisis, Volume Drop, Payer Mix Shift. Each scenario defines metric overrides that flow through the full analysis pipeline.
Open →✉ Data Sources
HCRIS (CMS Hospital Cost Reports)
Data SourceThe primary data source: CMS Hospital Cost Report Information System. Includes revenue, expenses, bed count, payer days, and geographic data for every Medicare-certified hospital. Updated annually with ~1 year lag.
Open →FRED (Federal Reserve Economic Data)
Data SourceUsed for market pulse indicators: 10-year Treasury yield (DGS10), healthcare CPI, national health expenditure estimates. API key optional (falls back to static benchmarks).
Open →SeekingChartis Score
CompositeEvery hospital gets a SeekingChartis Score computed from HCRIS data. Market position (beds, revenue scale), financial health (margin), operational quality (denial rate, AR days), and competitive moat (HHI, switching costs). Grade scale: A+ to F.
Open →★ Benchmarks & Methodology
RCM Benchmarks
ReferenceDenial Rate: <8% (excellent), 8-12% (good), >15% (concerning). Days in AR: <42 (excellent), 42-48 (good), >55 (slow). Clean Claim Rate: >95% (excellent), 90-95% (good). Net Collection Rate: >96% (strong). Cost to Collect: <4% (efficient).
Hospital Valuation Guide
ReferenceCurrent hospital EV/EBITDA: 9-12x (mid-market), 11-14x (large platform). WACC range: 8-12% depending on leverage and size. Terminal growth: 2.0-3.0% (Medicare reimbursement growth proxy). Minority discount: 15-25%.
Mauboussin Moat Framework
ReferenceBased on 'Measuring the Moat' (Mauboussin, 2002). Healthcare adaptation: Scale advantage (bed count vs market avg), switching costs (>200 beds = high), network density, margin premium vs peers. Moat rating: wide (8+), narrow (5-7), none (<5).