ML Analysis — BAKERSFIELD REHABILITATION HOSPITAL
CCN 053044 | 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.
31
/ 100 (D)
Financial Health3/25
RCM Upside19/25
Market Position2/20
Demand Defensibility3/15
Operational Efficiency4/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Expenses exceed revenue
Catalysts:
Margin Prediction (Trained Ridge Model)
-9.4%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-37.7%, 18.9%]. P39 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 250034.900 | -0.1856 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 478459.000 | +0.1452 | Higher Expense/Bed increases predicted margin | |
| Net-to-Gross | 0.606 | +0.0266 | Higher Net-to-Gross increases predicted margin | |
| Bed Utilization Value | 80101.387 | -0.0263 | Lower Bed Utilization Value decreases predicted ma | |
| Reimbursement Quality | 0.147 | +0.0156 | Higher Reimbursement Quality increases predicted m |
Turnaround: 34%Turnaround possible (34%) but uncertain. Margin improvement depends on improving Revenue/Bed.
nan%
Distress Risk
$9.5M
RCM Opportunity
A
Opportunity Grade
26.1%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
CA distress rate: 49.7%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.320 | +0.190 | ▲ risk |
| Medicare Day Pct | 0.757 | +0.074 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.606 | +0.106 | ▲ risk |
| Revenue Per Bed | 250034.900 | +0.078 | ▲ risk |
| Beds | 50.000 | -0.013 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $9.5M
Current margin: -50.0%
Projected margin: 26.1%
Grade: A
Comps: 104
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Payer Mix Optimization | 0.243 | 0.701 | 45.8% | $6.9M | 50% | 24mo |
| Occupancy Improvement | 0.320 | 0.721 | 40.1% | $2.6M | 55% | 24mo |
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. |