ML Analysis — WEST GEORGIA MEDICAL CENTER
CCN 110016 | 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.
52
/ 100 (C)
Financial Health11/25
RCM Upside14/25
Market Position15/20
Demand Defensibility10/15
Operational Efficiency1/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-7.3%
R²=0.34 | n=4,907 | Grade B | Actual: 0.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-35.6%, 21.0%]. P44 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 955875.257 | -0.0870 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 953678.703 | +0.0867 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 5.620 | +0.0289 | Higher Log(Beds) increases predicted margin | |
| Reimbursement Quality | 0.126 | +0.0216 | Higher Reimbursement Quality increases predicted m | |
| Net-to-Gross | 0.180 | -0.0212 | Lower Net-to-Gross decreases predicted margin |
Suburban Community Hospit
Archetype
52.3%
Distress Risk
$6.7M
RCM Opportunity
D
Opportunity Grade
2.8%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P71. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| PROMEDICA HICKMAN HOSPITAL | MI | 58 |
| WATAUGA MEDICAL CENTER | NC | 95 |
| ST LUKES HOSPITAL - EASTON CAMPUS | PA | 29 |
| CULPEPER MEMORIAL HOSPITAL | VA | 70 |
| SOUTHSIDE COMMUNITY HOSPITAL | VA | 80 |
| SPECTRUM HEALTH LUDINGTON | MI | 45 |
Distress Analysis
Risk: High
National distress rate: 49.3%
GA distress rate: 44.4%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.338 | +0.174 | ▲ risk |
| Net To Gross Ratio | 0.180 | -0.084 | ▼ risk |
| Revenue Per Bed | 955875.257 | +0.037 | ▲ risk |
| Medicare Day Pct | 0.213 | -0.019 | ▼ risk |
| Beds | 276.000 | +0.017 | ▲ risk |
| Medicaid Day Pct | 0.084 | -0.005 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.7M
Current margin: 0.2%
Projected margin: 2.8%
Grade: D
Comps: 43
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.338 | 0.804 | 46.6% | $3.1M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.180 | 0.275 | 9.5% | $2.9M | 65% | 18mo |
| Payer Mix Optimization | 0.703 | 0.750 | 4.7% | $708K | 50% | 24mo |
Predicted RCM Performance (Public Data Only)
A
RCM Grade
Strong RCM profile — likely low-risk from an operations perspective. Focus diligence on growth thesis.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 2.0% | [2.0%, 25.0%] | P0 | Strong — predicted denial rate is in the top third nationall |
| Days in AR | 25.0 | [25.0, 75.0] | P28 | Strong — predicted days in ar is in the top third nationally |
| 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. |