ML Analysis — COPPER SPRINGS
CCN 034032 | 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 Health5/25
RCM Upside20/25
Market Position2/20
Demand Defensibility9/15
Operational Efficiency2/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
Margin Prediction (Trained Ridge Model)
-3.1%
R²=0.34 | n=4,907 | Grade B | Actual: -15.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-31.4%, 25.2%]. P54 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 306227.799 | -0.1777 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 354917.049 | +0.1604 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.299 | -0.0282 | Higher Reimbursement Quality decreases predicted m | |
| State Peer Margin | -0.008 | +0.0279 | Higher State Peer Margin increases predicted margi | |
| Occupancy | 0.943 | +0.0238 | Higher Occupancy increases predicted margin |
Turnaround: 44%Turnaround possible (44%) but uncertain. Margin improvement depends on improving Revenue/Bed.
nan%
Distress Risk
$288K
RCM Opportunity
D
Opportunity Grade
-15.2%
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 | 0.943 | -0.388 | ▼ risk |
| Medicare Day Pct | 0.037 | -0.050 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 306227.799 | +0.075 | ▲ risk |
| Net To Gross Ratio | 0.311 | -0.026 | ▼ risk |
| Beds | 144.000 | -0.001 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $288K
Current margin: -15.9%
Projected margin: -15.2%
Grade: D
Comps: 45
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 | 0.311 | 0.367 | 5.6% | $288K | 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. |