ML Analysis — NORTH SHORE MEDICAL CENTER AND FMC
CCN 100029 | 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.
44
/ 100 (D)
Financial Health12/25
RCM Upside12/25
Market Position11/20
Demand Defensibility8/15
Operational Efficiency1/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
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)
-8.4%
R²=0.34 | n=4,907 | Grade B | Actual: 4.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-36.7%, 19.9%]. P41 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 493967.302 | -0.1515 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 473783.465 | +0.1458 | Higher Expense/Bed increases predicted margin | |
| Bed Count | 748.000 | -0.0935 | Higher Bed Count decreases predicted margin | |
| State Peer Margin | 0.032 | +0.0578 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 6.617 | +0.0521 | Higher Log(Beds) increases predicted margin |
Suburban Community Hospit
Archetype
53.4%
Distress Risk
$7.6M
RCM Opportunity
D
Opportunity Grade
6.2%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P99. 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%
FL distress rate: 30.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.349 | +0.164 | ▲ risk |
| Net To Gross Ratio | 0.110 | -0.115 | ▼ risk |
| Beds | 748.000 | +0.080 | ▲ risk |
| Revenue Per Bed | 493967.302 | +0.064 | ▲ risk |
| Medicare Day Pct | 0.153 | -0.030 | ▼ risk |
| Medicaid Day Pct | 0.088 | -0.001 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.6M
Current margin: 4.1%
Projected margin: 6.2%
Grade: D
Comps: 36
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 | 0.110 | 0.225 | 11.5% | $5.0M | 65% | 18mo |
| Occupancy Improvement | 0.349 | 0.752 | 40.3% | $2.7M | 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 | 25.0 | [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. |