ML Analysis — RIVER POINT BEHAVIORAL HEALTH
CCN 104016 | 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.
46
/ 100 (C)
Financial Health13/25
RCM Upside10/25
Market Position10/20
Demand Defensibility7/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-3.2%
R²=0.34 | n=4,907 | Grade B | Actual: 9.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-31.5%, 25.1%]. P54 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 240793.667 | -0.1868 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 217954.571 | +0.1773 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | 0.032 | +0.0578 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.352 | -0.0434 | Higher Reimbursement Quality decreases predicted m | |
| Bed Utilization Value | 153759.244 | -0.0239 | Lower Bed Utilization Value decreases predicted ma |
nan%
Distress Risk
$889K
RCM Opportunity
D
Opportunity Grade
13.9%
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 | 0.639 | -0.105 | ▼ risk |
| Medicare Day Pct | 0.051 | -0.047 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 240793.667 | +0.079 | ▲ risk |
| Beds | 84.000 | -0.009 | ▼ risk |
| Net To Gross Ratio | 0.372 | +0.001 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $889K
Current margin: 9.5%
Projected margin: 13.9%
Grade: D
Comps: 119
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.639 | 0.772 | 13.4% | $884K | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.372 | 0.374 | 0.2% | $5K | 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. |