ML Analysis — SSH - PHOENIX
CCN 032001 | 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.
34
/ 100 (D)
Financial Health9/25
RCM Upside14/25
Market Position2/20
Demand Defensibility8/15
Operational Efficiency1/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
Margin Prediction (Trained Ridge Model)
-2.2%
R²=0.34 | n=4,907 | Grade B | Actual: 3.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-30.6%, 26.1%]. P56 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 572777.958 | -0.1405 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 551209.104 | +0.1362 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.103 | +0.0283 | Higher Reimbursement Quality increases predicted m | |
| State Peer Margin | -0.008 | +0.0279 | Higher State Peer Margin increases predicted margi | |
| Net-to-Gross | 0.137 | -0.0260 | Lower Net-to-Gross decreases predicted margin |
nan%
Distress Risk
$1.2M
RCM Opportunity
D
Opportunity Grade
8.2%
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 | 0.742 | -0.202 | ▼ risk |
| Medicare Day Pct | 0.248 | -0.014 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.137 | -0.103 | ▼ risk |
| Revenue Per Bed | 572777.958 | +0.059 | ▲ risk |
| Beds | 48.000 | -0.013 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.2M
Current margin: 3.8%
Projected margin: 8.2%
Grade: D
Comps: 57
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 | 0.137 | 0.517 | 38.0% | $1.2M | 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. |