ML Analysis — PARADISE VALLEY HOSPITAL
CCN 050024 | 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 Health8/25
RCM Upside17/25
Market Position9/20
Demand Defensibility9/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-10.5%
R²=0.34 | n=4,907 | Grade B | Actual: -0.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-38.9%, 17.8%]. P36 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 612060.730 | -0.1350 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 617901.561 | +0.1280 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 5.438 | +0.0247 | Higher Log(Beds) increases predicted margin | |
| Bed Utilization Value | 265989.418 | -0.0201 | Lower Bed Utilization Value decreases predicted ma | |
| Reimbursement Quality | 0.257 | -0.0161 | Higher Reimbursement Quality decreases predicted m |
Turnaround: 32%Turnaround possible (32%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Suburban Community Hospit
Archetype
53.6%
Distress Risk
$2.7M
RCM Opportunity
D
Opportunity Grade
1.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P63. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| CLARA MAASS MEDICAL CENTER | NJ | 259 |
| PRESENCE SAINTS MARY & ELIZABETH MED | IL | 266 |
| ADVENTIST HEALTH BAKERSFIELD | CA | 254 |
| BRISTOL REGIONAL MEDICAL CENTER | TN | 244 |
| HOLSTON VALLEY HOSP & MED CTR | TN | 286 |
| SPRINGFIELD REGIONAL MEDICAL CENTER | OH | 230 |
Distress Analysis
Risk: High
National distress rate: 49.3%
CA distress rate: 49.7%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.435 | +0.084 | ▲ risk |
| Revenue Per Bed | 612060.730 | +0.057 | ▲ risk |
| Medicaid Day Pct | 0.140 | +0.052 | ▲ risk |
| Medicare Day Pct | 0.152 | -0.030 | ▼ risk |
| Beds | 230.000 | +0.011 | ▲ risk |
| Net To Gross Ratio | 0.364 | -0.002 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.7M
Current margin: -0.9%
Projected margin: 1.0%
Grade: D
Comps: 199
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.435 | 0.753 | 31.9% | $2.1M | 55% | 24mo |
| Payer Mix Optimization | 0.707 | 0.750 | 4.2% | $634K | 50% | 24mo |
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. |