ML Analysis — KINDRED HOSPITAL SOUTH FLORIDA
CCN 102010 | 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.
41
/ 100 (D)
Financial Health7/25
RCM Upside20/25
Market Position4/20
Demand Defensibility11/15
Operational Efficiency0/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
Margin Prediction (Trained Ridge Model)
-0.4%
R²=0.34 | n=4,907 | Grade B | Actual: -11.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-28.7%, 27.9%]. P61 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 493970.700 | -0.1515 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 550111.741 | +0.1364 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | 0.032 | +0.0578 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.125 | +0.0219 | Higher Reimbursement Quality increases predicted m | |
| Net-to-Gross | 0.178 | -0.0214 | Lower Net-to-Gross decreases predicted margin |
Turnaround: 49%Turnaround possible (49%) but uncertain. Margin improvement depends on improving Revenue/Bed.
nan%
Distress Risk
$1.9M
RCM Opportunity
D
Opportunity Grade
-9.4%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
FL distress rate: 30.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.667 | -0.132 | ▼ risk |
| Medicare Day Pct | 0.295 | -0.005 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.178 | -0.085 | ▼ risk |
| Revenue Per Bed | 493970.701 | +0.064 | ▲ risk |
| Beds | 197.000 | +0.006 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.9M
Current margin: -11.4%
Projected margin: -9.4%
Grade: D
Comps: 124
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 | 0.705 | 0.764 | 5.9% | $891K | 50% | 24mo |
| Occupancy Improvement | 0.667 | 0.755 | 8.8% | $581K | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.178 | 0.220 | 4.2% | $475K | 65% | 18mo |
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. |