ML Analysis — WAHIAWA GENERAL HOSPITAL
CCN 120004 | 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.
38
/ 100 (D)
Financial Health3/25
RCM Upside21/25
Market Position4/20
Demand Defensibility6/15
Operational Efficiency4/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Expenses exceed revenue
Catalysts:
Margin Prediction (Trained Ridge Model)
-19.4%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-47.8%, 8.8%]. P21 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | -0.147 | -0.0753 | Lower State Peer Margin decreases predicted margin | |
| Expense/Bed | 2020272.526 | -0.0447 | Higher Expense/Bed decreases predicted margin | |
| Revenue/Bed | 1274963.368 | -0.0425 | Lower Revenue/Bed decreases predicted margin | |
| Log(Beds) | 2.944 | -0.0332 | Lower Log(Beds) decreases predicted margin | |
| Occupancy | 0.942 | +0.0237 | Higher Occupancy increases predicted margin |
Turnaround: 20%Low turnaround probability (20%). Structural disadvantages in State Peer Margin and Expense/Bed.
nan%
Distress Risk
$953K
RCM Opportunity
D
Opportunity Grade
-46.1%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
HI distress rate: 68.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.942 | -0.387 | ▼ risk |
| Medicare Day Pct | 0.165 | -0.028 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.278 | -0.040 | ▼ risk |
| Revenue Per Bed | 1274963.368 | +0.018 | ▲ risk |
| Beds | 19.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $953K
Current margin: -50.0%
Projected margin: -46.1%
Grade: D
Comps: 2070
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.278 | 0.614 | 33.6% | $953K | 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. |