ML Analysis — PAM SPECIALTY HOSPITAL OF SARASOTA
CCN 102018 | 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.
43
/ 100 (D)
Financial Health15/25
RCM Upside7/25
Market Position8/20
Demand Defensibility6/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
Catalysts:
Margin Prediction (Trained Ridge Model)
4.0%
R²=0.34 | n=4,907 | Grade B | Actual: 13.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-24.3%, 32.3%]. P72 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 567235.175 | +0.1343 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 657050.075 | -0.1287 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | 0.032 | +0.0578 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.113 | +0.0254 | Higher Reimbursement Quality increases predicted m | |
| Occupancy | 0.877 | +0.0200 | Higher Occupancy increases predicted margin |
nan%
Distress Risk
$5.5M
RCM Opportunity
A
Opportunity Grade
34.7%
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 | 0.877 | -0.327 | ▼ risk |
| Medicare Day Pct | 0.615 | +0.049 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 657050.075 | +0.054 | ▲ risk |
| Net To Gross Ratio | 0.294 | -0.033 | ▼ risk |
| Beds | 40.000 | -0.015 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.5M
Current margin: 13.7%
Projected margin: 34.7%
Grade: A
Comps: 78
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 | 0.385 | 0.690 | 30.5% | $4.6M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.294 | 0.600 | 30.6% | $942K | 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. |