ML Analysis — OASIS HOSPITAL
CCN 030131 | 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.
38
/ 100 (D)
Financial Health10/25
RCM Upside13/25
Market Position2/20
Demand Defensibility8/15
Operational Efficiency5/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Low occupancy (<30%) — demand risk
Catalysts:
Margin Prediction (Trained Ridge Model)
-6.2%
R²=0.34 | n=4,907 | Grade B | Actual: 3.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-34.5%, 22.1%]. P46 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 997995.984 | +0.0812 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1032519.094 | -0.0763 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.008 | +0.0279 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 162833.919 | -0.0236 | Lower Bed Utilization Value decreases predicted ma | |
| Occupancy | 0.158 | -0.0209 | Lower Occupancy decreases predicted margin |
nan%
Distress Risk
$8.4M
RCM Opportunity
B
Opportunity Grade
16.1%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
AZ distress rate: 35.5%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.158 | +0.341 | ▲ risk |
| Medicare Day Pct | 0.431 | +0.018 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.257 | -0.050 | ▼ risk |
| Revenue Per Bed | 1032519.094 | +0.032 | ▲ risk |
| Beds | 64.000 | -0.011 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $8.4M
Current margin: 3.3%
Projected margin: 16.1%
Grade: B
Comps: 50
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.158 | 0.742 | 58.4% | $3.9M | 55% | 24mo |
| Payer Mix Optimization | 0.569 | 0.725 | 15.6% | $2.3M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.257 | 0.545 | 28.8% | $2.2M | 65% | 18mo |
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. |