ML Analysis — JACKSON MEDICAL CENTER
CCN 010128 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Hold / Selective — investigate specific opportunities but be prepared for execution risk.
45
/ 100 (C)
Financial Health4/25
RCM Upside18/25
Market Position15/20
Demand Defensibility4/15
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:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-18.8%
R²=0.34 | n=4,907 | Grade B | Actual: -30.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-47.1%, 9.5%]. P22 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 326748.171 | -0.1748 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 425298.914 | +0.1518 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.085 | -0.0292 | Lower State Peer Margin decreases predicted margin | |
| Bed Utilization Value | 56372.052 | -0.0271 | Lower Bed Utilization Value decreases predicted ma | |
| Medicaid % | 0.256 | -0.0203 | Higher Medicaid % decreases predicted margin |
Turnaround: 21%Low turnaround probability (21%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Under-Performing / Distre
Archetype
62.6%
Distress Risk
$4.2M
RCM Opportunity
A
Opportunity Grade
6.3%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P79. Deeply negative margins signal severe distress. Evaluate asset-level acquisition at 4-6x normalized EBITDA.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| HOLY FAMILY MEMORIAL INC | WI | 58 |
| MIDDLESBORO ARH | KY | 46 |
| ATRIUM HEALTH NAVICENT BALDWIN | GA | 86 |
| BON SECOURS COMMUNITY HOSPITAL | NY | 98 |
| ADVANCED SPECIALTY HOSP. OF TOLEDO | OH | 40 |
| COMMUNITY HEALTH CENTER BRANCH | MI | 75 |
Distress Analysis
Risk: High
National distress rate: 49.3%
AL distress rate: 58.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.173 | +0.327 | ▲ risk |
| Medicaid Day Pct | 0.256 | +0.167 | ▲ risk |
| Revenue Per Bed | 326748.171 | +0.074 | ▲ risk |
| Beds | 35.000 | -0.015 | ▼ risk |
| Net To Gross Ratio | 0.357 | -0.005 | ▼ risk |
| Medicare Day Pct | 0.299 | -0.005 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.2M
Current margin: -30.2%
Projected margin: 6.3%
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 | 0.444 | 0.586 | 14.2% | $2.1M | 50% | 24mo |
| Occupancy Improvement | 0.173 | 0.464 | 29.1% | $1.9M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.357 | 0.450 | 9.3% | $125K | 65% | 18mo |
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 | 33.7 | [25.0, 75.0] | P77 | Average — predicted days in ar is near the median. |
| Clean Claim Rate | 98.0% | [80.0%, 98.0%] | P0 | Strong — predicted clean claim rate is in the top third. |
| Net Collection Rate | 99.4% | [90.0%, 99.5%] | P7 | Strong — predicted net collection rate is in the top third. |