ML Analysis — CITRUS MEMORIAL HOSPITAL
CCN 100023 | 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.
59
/ 100 (C)
Financial Health13/25
RCM Upside14/25
Market Position17/20
Demand Defensibility14/15
Operational Efficiency1/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
1.5%
R²=0.34 | n=4,907 | Grade B | Actual: 1.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-26.8%, 29.8%]. P66 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 945049.397 | +0.0877 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 962372.770 | -0.0861 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | 0.032 | +0.0578 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.047 | +0.0444 | Higher Reimbursement Quality increases predicted m | |
| Net-to-Gross | 0.077 | -0.0327 | Lower Net-to-Gross decreases predicted margin |
Suburban Community Hospit
Archetype
44.2%
Distress Risk
$6.4M
RCM Opportunity
D
Opportunity Grade
5.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P23. 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%
FL distress rate: 30.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 0.077 | -0.130 | ▼ risk |
| Occupancy Rate | 0.602 | -0.071 | ▼ risk |
| Medicaid Day Pct | 0.035 | -0.054 | ▼ risk |
| Revenue Per Bed | 962372.770 | +0.036 | ▲ risk |
| Beds | 204.000 | +0.007 | ▲ risk |
| Medicare Day Pct | 0.353 | +0.005 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.4M
Current margin: 1.8%
Projected margin: 5.1%
Grade: D
Comps: 123
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.077 | 0.213 | 13.6% | $3.1M | 65% | 18mo |
| Payer Mix Optimization | 0.612 | 0.767 | 15.5% | $2.3M | 50% | 24mo |
| Occupancy Improvement | 0.602 | 0.752 | 15.0% | $988K | 55% | 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 | 25.8 | [25.0, 75.0] | P32 | 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. |