ML Analysis — BANNER GOLDFIELD MEDICAL CENTER
CCN 030134 | 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.
46
/ 100 (C)
Financial Health6/25
RCM Upside18/25
Market Position15/20
Demand Defensibility5/15
Operational Efficiency2/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-8.7%
R²=0.34 | n=4,907 | Grade B | Actual: -4.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-37.0%, 19.6%]. P40 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 1217006.500 | -0.0506 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1267477.550 | +0.0480 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 2.996 | -0.0320 | Lower Log(Beds) decreases predicted margin | |
| Reimbursement Quality | 0.092 | +0.0316 | Higher Reimbursement Quality increases predicted m | |
| State Peer Margin | -0.008 | +0.0279 | Higher State Peer Margin increases predicted margi |
Turnaround: 35%Turnaround possible (35%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Suburban Community Hospit
Archetype
53.3%
Distress Risk
$4.6M
RCM Opportunity
A
Opportunity Grade
14.8%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P62. 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: High
National distress rate: 49.3%
AZ distress rate: 35.5%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.356 | +0.157 | ▲ risk |
| Medicaid Day Pct | 0.182 | +0.093 | ▲ risk |
| Net To Gross Ratio | 0.171 | -0.088 | ▼ risk |
| Revenue Per Bed | 1217006.500 | +0.021 | ▲ risk |
| Beds | 20.000 | -0.017 | ▼ risk |
| Medicare Day Pct | 0.283 | -0.008 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.6M
Current margin: -4.2%
Projected margin: 14.8%
Grade: A
Comps: 34
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 | 0.535 | 0.676 | 14.1% | $2.1M | 50% | 24mo |
| Occupancy Improvement | 0.356 | 0.587 | 23.1% | $1.5M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.171 | 0.517 | 34.6% | $984K | 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 | 33.6 | [25.0, 75.0] | P76 | 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 | 99.2% | [90.0%, 99.5%] | P5 | Strong — predicted net collection rate is in the top third. |