ML Analysis — DESTINY SPRINGS HEALTHCARE
CCN 034034 | 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 Health16/25
RCM Upside5/25
Market Position8/20
Demand Defensibility8/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-3.4%
R²=0.34 | n=4,907 | Grade B | Actual: 25.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-31.7%, 24.9%]. P53 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 337937.911 | -0.1733 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 251263.600 | +0.1732 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.535 | -0.0959 | Higher Reimbursement Quality decreases predicted m | |
| State Peer Margin | -0.008 | +0.0279 | Higher State Peer Margin increases predicted margi | |
| Occupancy | 1.000 | +0.0270 | Higher Occupancy increases predicted margin |
nan%
Distress Risk
$0
RCM Opportunity
D
Opportunity Grade
25.7%
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 | 1.000 | -0.441 | ▼ risk |
| Medicare Day Pct | 0.018 | -0.053 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.545 | +0.078 | ▲ risk |
| Revenue Per Bed | 337937.911 | +0.073 | ▲ risk |
| Beds | 90.000 | -0.008 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $0
Current margin: 25.7%
Projected margin: 25.7%
Grade: D
Comps: 55
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|
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. |