ML Analysis — KINDRED HOSPITAL OCALA
CCN 102019 | 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 Upside5/25
Market Position8/20
Demand Defensibility8/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-3.8%
R²=0.34 | n=4,907 | Grade B | Actual: 18.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-32.0%, 24.6%]. P52 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 274450.548 | -0.1821 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 224444.419 | +0.1765 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | 0.032 | +0.0578 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 118027.076 | -0.0250 | Lower Bed Utilization Value decreases predicted ma | |
| Log(Beds) | 3.434 | -0.0218 | Lower Log(Beds) decreases predicted margin |
nan%
Distress Risk
$2.9M
RCM Opportunity
A
Opportunity Grade
52.6%
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 | 0.430 | +0.088 | ▲ risk |
| Medicare Day Pct | 0.351 | +0.004 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 274450.548 | +0.077 | ▲ risk |
| Net To Gross Ratio | 0.253 | -0.052 | ▼ risk |
| Beds | 31.000 | -0.016 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.9M
Current margin: 18.2%
Projected margin: 52.6%
Grade: A
Comps: 54
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.430 | 0.811 | 38.0% | $2.5M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.253 | 0.587 | 33.5% | $333K | 65% | 18mo |
| Payer Mix Optimization | 0.649 | 0.654 | 0.6% | $85K | 50% | 24mo |
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. |