ML Analysis — RESNICK NEUROPSYCHIATRIC HOSPITAL AT
CCN 054009 | 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 Health5/25
RCM Upside20/25
Market Position9/20
Demand Defensibility8/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-9.7%
R²=0.34 | n=4,907 | Grade B | Actual: -44.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-38.0%, 18.6%]. P38 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 894440.176 | -0.0956 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1289511.230 | +0.0453 | Higher Expense/Bed increases predicted margin | |
| Occupancy | 0.903 | +0.0215 | Higher Occupancy increases predicted margin | |
| Medicaid % | 0.215 | -0.0152 | Higher Medicaid % decreases predicted margin | |
| Reimbursement Quality | 0.246 | -0.0129 | Higher Reimbursement Quality decreases predicted m |
Turnaround: 33%Turnaround possible (33%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Under-Performing / Distre
Archetype
44.1%
Distress Risk
$1.5M
RCM Opportunity
D
Opportunity Grade
-41.9%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P96. Deeply negative margins signal severe distress. Evaluate asset-level acquisition at 4-6x normalized EBITDA.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| HOLY FAMILY MEMORIAL INC | WI | 58 |
| MIDDLESBORO ARH | KY | 46 |
| ATRIUM HEALTH NAVICENT BALDWIN | GA | 86 |
| BON SECOURS COMMUNITY HOSPITAL | NY | 98 |
| ADVANCED SPECIALTY HOSP. OF TOLEDO | OH | 40 |
| COMMUNITY HEALTH CENTER BRANCH | MI | 75 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
CA distress rate: 49.7%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.903 | -0.350 | ▼ risk |
| Medicaid Day Pct | 0.215 | +0.126 | ▲ risk |
| Revenue Per Bed | 894440.176 | +0.040 | ▲ risk |
| Medicare Day Pct | 0.165 | -0.028 | ▼ risk |
| Net To Gross Ratio | 0.397 | +0.013 | ▲ risk |
| Beds | 74.000 | -0.010 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.5M
Current margin: -44.2%
Projected margin: -41.9%
Grade: D
Comps: 145
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 | 0.620 | 0.722 | 10.3% | $1.5M | 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 | 28.4 | [25.0, 75.0] | P46 | 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. |