ML Analysis — PICKENS COUNTY MEDICAL CENTER
CCN 010109 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
42
/ 100 (D)
Financial Health1/25
RCM Upside18/25
Market Position13/20
Demand Defensibility6/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-18.1%
R²=0.34 | n=4,907 | Grade B | Actual: -12.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-46.5%, 10.2%]. P23 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 133906.500 | -0.2018 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 150680.750 | +0.1856 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.085 | -0.0292 | Lower State Peer Margin decreases predicted margin | |
| Bed Utilization Value | 19375.009 | -0.0283 | Lower Bed Utilization Value decreases predicted ma | |
| Medicaid % | 0.322 | -0.0282 | Higher Medicaid % decreases predicted margin |
Turnaround: 22%Low turnaround probability (22%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Safety-Net/Medicaid Heavy
Archetype
66.3%
Distress Risk
$6.0M
RCM Opportunity
A
Opportunity Grade
111.3%
Projected Margin
Cluster: Safety-Net/Medicaid Heavy
Percentile within cluster: P73. High Medicaid dependence creates reimbursement risk. Assess DSH payments and state expansion status.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| WESTERN PEAKS SPECIALTY HOSPITAL | UT | 59 |
| HOSPITAL MENONITA AIBONITO | PR | 129 |
| TOPPENISH COMMUNITY HOSPITAL | WA | 47 |
| MINERAL COMMUNITY HOSPITAL | MT | 25 |
| BANNER UNIVERSITY MED CENTER SOUTH | AZ | 132 |
| NORTH COLORADO MEDICAL CENTER | CO | 202 |
Distress Analysis
Risk: High
National distress rate: 49.3%
AL distress rate: 58.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.145 | +0.353 | ▲ risk |
| Medicaid Day Pct | 0.322 | +0.233 | ▲ risk |
| Revenue Per Bed | 133906.500 | +0.085 | ▲ risk |
| Net To Gross Ratio | 0.469 | +0.045 | ▲ risk |
| Beds | 36.000 | -0.015 | ▼ risk |
| Medicare Day Pct | 0.350 | +0.004 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.0M
Current margin: -12.5%
Projected margin: 111.3%
Grade: A
Comps: 57
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Payer Mix Optimization | 0.328 | 0.586 | 25.8% | $3.9M | 50% | 24mo |
| Occupancy Improvement | 0.145 | 0.464 | 31.9% | $2.1M | 55% | 24mo |
Predicted RCM Performance (Public Data Only)
A
RCM Grade
Strong RCM profile — likely low-risk from an operations perspective. Focus diligence on growth thesis.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 2.0% | [2.0%, 25.0%] | P0 | Strong — predicted denial rate is in the top third nationall |
| Days in AR | 31.9 | [25.0, 75.0] | P70 | Strong — predicted days in ar is in the top third nationally |
| Clean Claim Rate | 98.0% | [80.0%, 98.0%] | P0 | Strong — predicted clean claim rate is in the top third. |
| Net Collection Rate | 99.5% | [90.0%, 99.5%] | P8 | Strong — predicted net collection rate is in the top third. |