ML Analysis — ST. VINCENTS ST. CLAIR
CCN 010130 | 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.
50
/ 100 (C)
Financial Health12/25
RCM Upside10/25
Market Position15/20
Demand Defensibility8/15
Operational Efficiency5/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-7.3%
R²=0.34 | n=4,907 | Grade B | Actual: 8.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-35.6%, 21.0%]. P43 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 931690.650 | +0.0894 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1020520.900 | -0.0780 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.085 | -0.0292 | Lower State Peer Margin decreases predicted margin | |
| Reimbursement Quality | 0.102 | +0.0287 | Higher Reimbursement Quality increases predicted m | |
| Net-to-Gross | 0.143 | -0.0253 | Lower Net-to-Gross decreases predicted margin |
Suburban Community Hospit
Archetype
43.3%
Distress Risk
$1.5M
RCM Opportunity
D
Opportunity Grade
12.4%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P24. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| PROMEDICA HICKMAN HOSPITAL | MI | 58 |
| WATAUGA MEDICAL CENTER | NC | 95 |
| ST LUKES HOSPITAL - EASTON CAMPUS | PA | 29 |
| CULPEPER MEMORIAL HOSPITAL | VA | 70 |
| SOUTHSIDE COMMUNITY HOSPITAL | VA | 80 |
| SPECTRUM HEALTH LUDINGTON | MI | 45 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
AL distress rate: 58.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.648 | -0.114 | ▼ risk |
| Net To Gross Ratio | 0.143 | -0.100 | ▼ risk |
| Revenue Per Bed | 1020520.900 | +0.033 | ▲ risk |
| Medicaid Day Pct | 0.057 | -0.032 | ▼ risk |
| Medicare Day Pct | 0.234 | -0.016 | ▼ risk |
| Beds | 40.000 | -0.015 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.5M
Current margin: 8.7%
Projected margin: 12.4%
Grade: D
Comps: 60
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.143 | 0.457 | 31.3% | $1.5M | 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 | 28.9 | [25.0, 75.0] | P50 | 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. |