ML Analysis — ENCOMPASS HEALTH REHABILITATION HOSP
CCN 013028 | 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.
47
/ 100 (C)
Financial Health15/25
RCM Upside7/25
Market Position6/20
Demand Defensibility10/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
Margin Prediction (Trained Ridge Model)
-4.2%
R²=0.34 | n=4,907 | Grade B | Actual: 11.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-32.5%, 24.1%]. P51 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 434566.200 | -0.1598 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 385068.200 | +0.1567 | Higher Expense/Bed increases predicted margin | |
| Net-to-Gross | 0.648 | +0.0313 | Higher Net-to-Gross increases predicted margin | |
| State Peer Margin | -0.085 | -0.0292 | Lower State Peer Margin decreases predicted margin | |
| Reimbursement Quality | 0.302 | -0.0291 | Higher Reimbursement Quality decreases predicted m |
nan%
Distress Risk
$1.9M
RCM Opportunity
D
Opportunity Grade
17.1%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
AL distress rate: 58.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.875 | -0.325 | ▼ risk |
| Medicare Day Pct | 0.533 | +0.035 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.648 | +0.125 | ▲ risk |
| Revenue Per Bed | 434566.200 | +0.068 | ▲ risk |
| Beds | 75.000 | -0.010 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.9M
Current margin: 11.4%
Projected margin: 17.1%
Grade: D
Comps: 46
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 | 0.467 | 0.591 | 12.4% | $1.9M | 50% | 24mo |
Predicted RCM Performance (Public Data Only)
B
RCM Grade
Average RCM profile — some improvement opportunities. Standard diligence scope recommended.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 25.0% | [2.0%, 25.0%] | P83 | Below average — denial rate suggests RCM improvement opportu |
| Days in AR | 75.0 | [25.0, 75.0] | P83 | Below average — days in ar suggests RCM improvement opportun |
| 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. |