ML Analysis — REHABILITATION HOSPITAL OF HENRY
CCN 113035 | 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.
42
/ 100 (D)
Financial Health4/25
RCM Upside19/25
Market Position11/20
Demand Defensibility4/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Expenses exceed revenue
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-4.8%
R²=0.34 | n=4,907 | Grade B | Actual: -29.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-33.1%, 23.5%]. P50 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 62743.300 | -0.2117 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 81027.500 | +0.1942 | Higher Expense/Bed increases predicted margin | |
| Bed Utilization Value | 25471.367 | -0.0281 | Lower Bed Utilization Value decreases predicted ma | |
| Net-to-Gross | 0.588 | +0.0246 | Higher Net-to-Gross increases predicted margin | |
| Reimbursement Quality | 0.132 | +0.0200 | Higher Reimbursement Quality increases predicted m |
Turnaround: 42%Turnaround possible (42%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Rural/Critical Access
Archetype
56.3%
Distress Risk
$8.9M
RCM Opportunity
A
Opportunity Grade
253.3%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P74. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| DAYTON GENERAL HOSPITAL | WA | 25 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
Distress Analysis
Risk: High
National distress rate: 49.3%
GA distress rate: 44.4%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.406 | +0.111 | ▲ risk |
| Net To Gross Ratio | 0.588 | +0.098 | ▲ risk |
| Revenue Per Bed | 62743.300 | +0.090 | ▲ risk |
| Medicaid Day Pct | 0.008 | -0.081 | ▼ risk |
| Medicare Day Pct | 0.768 | +0.076 | ▲ risk |
| Beds | 50.000 | -0.013 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $8.9M
Current margin: -29.1%
Projected margin: 253.3%
Grade: A
Comps: 89
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 | 0.224 | 0.692 | 46.8% | $7.0M | 50% | 24mo |
| Occupancy Improvement | 0.406 | 0.684 | 27.8% | $1.8M | 55% | 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 | 30.6 | [25.0, 75.0] | P62 | 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. |