ML Analysis — CPMC-R.K. DAVIES MEDICAL CENTER
CCN 050008 | 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.
56
/ 100 (C)
Financial Health19/25
RCM Upside5/25
Market Position11/20
Demand Defensibility11/15
Operational Efficiency11/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
3.5%
R²=0.34 | n=4,907 | Grade B | Actual: 24.6%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-24.9%, 31.8%]. P71 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2320536.886 | +0.1035 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 1750381.495 | -0.0115 | Higher Expense/Bed decreases predicted margin | |
| Net-to-Gross | 0.305 | -0.0072 | Lower Net-to-Gross decreases predicted margin | |
| Bed Count | 105.000 | +0.0068 | Higher Bed Count increases predicted margin | |
| Occupancy | 0.411 | -0.0065 | Lower Occupancy decreases predicted margin |
Suburban Community Hospit
Archetype
49.0%
Distress Risk
$3.5M
RCM Opportunity
D
Opportunity Grade
26.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P36. 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: Elevated
National distress rate: 49.3%
CA distress rate: 49.7%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.411 | +0.106 | ▲ risk |
| Revenue Per Bed | 2320536.886 | -0.044 | ▼ risk |
| Medicaid Day Pct | 0.049 | -0.040 | ▼ risk |
| Net To Gross Ratio | 0.305 | -0.028 | ▼ risk |
| Beds | 105.000 | -0.006 | ▼ risk |
| Medicare Day Pct | 0.313 | -0.002 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.5M
Current margin: 24.6%
Projected margin: 26.0%
Grade: D
Comps: 171
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.411 | 0.727 | 31.6% | $2.1M | 55% | 24mo |
| Payer Mix Optimization | 0.637 | 0.728 | 9.0% | $1.4M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.305 | 0.306 | 0.1% | $28K | 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 | 25.0 | [25.0, 75.0] | P0 | Strong — predicted days in ar is in the top third nationally |
| 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. |