ML Analysis — SUNCOAST BEHAVIORAL HEALTH CENTER
CCN 104078 | 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 Health4/25
RCM Upside19/25
Market Position8/20
Demand Defensibility5/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Expenses exceed revenue
Catalysts:
Margin Prediction (Trained Ridge Model)
-6.1%
R²=0.34 | n=4,907 | Grade B | Actual: -23.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-34.4%, 22.2%]. P47 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 218150.625 | -0.1900 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 270393.175 | +0.1708 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | 0.032 | +0.0578 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.383 | -0.0522 | Higher Reimbursement Quality decreases predicted m | |
| Bed Utilization Value | 129560.553 | -0.0247 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 39%Turnaround possible (39%) but uncertain. Margin improvement depends on improving Revenue/Bed.
nan%
Distress Risk
$1.7M
RCM Opportunity
A
Opportunity Grade
-4.5%
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 | 0.594 | -0.064 | ▼ risk |
| Medicare Day Pct | 0.009 | -0.055 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 218150.625 | +0.080 | ▲ risk |
| Beds | 40.000 | -0.015 | ▼ risk |
| Net To Gross Ratio | 0.386 | +0.008 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.7M
Current margin: -23.9%
Projected margin: -4.5%
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 |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.594 | 0.818 | 22.4% | $1.5M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.386 | 0.600 | 21.4% | $218K | 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. |