ML Analysis — CRESTWOOD MEDICAL CENTER
CCN 010131 | 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.
56
/ 100 (C)
Financial Health18/25
RCM Upside7/25
Market Position13/20
Demand Defensibility10/15
Operational Efficiency7/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-2.6%
R²=0.34 | n=4,907 | Grade B | Actual: 14.6%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-30.9%, 25.7%]. P56 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Reimbursement Quality | 0.046 | +0.0449 | Higher Reimbursement Quality increases predicted m | |
| Expense/Bed | 1347847.744 | +0.0381 | Higher Expense/Bed increases predicted margin | |
| Net-to-Gross | 0.074 | -0.0331 | Lower Net-to-Gross decreases predicted margin | |
| State Peer Margin | -0.085 | -0.0292 | Lower State Peer Margin decreases predicted margin | |
| Log(Beds) | 5.100 | +0.0169 | Higher Log(Beds) increases predicted margin |
Suburban Community Hospit
Archetype
43.5%
Distress Risk
$8.7M
RCM Opportunity
D
Opportunity Grade
18.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P26. 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 |
|---|---|---|---|
| Net To Gross Ratio | 0.074 | -0.131 | ▼ risk |
| Occupancy Rate | 0.639 | -0.106 | ▼ risk |
| Medicare Day Pct | 0.289 | -0.007 | ▼ risk |
| Medicaid Day Pct | 0.094 | +0.005 | ▲ risk |
| Beds | 164.000 | +0.002 | ▲ risk |
| Revenue Per Bed | 1578869.329 | +0.000 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $8.7M
Current margin: 14.6%
Projected margin: 18.0%
Grade: D
Comps: 34
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 | 0.074 | 0.317 | 24.3% | $7.4M | 65% | 18mo |
| Occupancy Improvement | 0.639 | 0.769 | 13.0% | $860K | 55% | 24mo |
| Payer Mix Optimization | 0.618 | 0.649 | 3.1% | $470K | 50% | 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 | 25.1 | [25.0, 75.0] | P28 | 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. |