ML Analysis — WEST VALLEY MEDICAL CENTER
CCN 130014 | 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 Health19/25
RCM Upside5/25
Market Position15/20
Demand Defensibility6/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-6.9%
R²=0.34 | n=4,907 | Grade B | Actual: 24.6%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-35.2%, 21.4%]. P44 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 794580.786 | +0.1063 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1054018.375 | -0.0733 | Lower Revenue/Bed decreases predicted margin | |
| Reimbursement Quality | 0.101 | +0.0291 | Higher Reimbursement Quality increases predicted m | |
| Medicaid % | 0.327 | -0.0289 | Higher Medicaid % decreases predicted margin | |
| Net-to-Gross | 0.195 | -0.0195 | Lower Net-to-Gross decreases predicted margin |
Safety-Net/Medicaid Heavy
Archetype
57.8%
Distress Risk
$9.1M
RCM Opportunity
C
Opportunity Grade
32.3%
Projected Margin
Cluster: Safety-Net/Medicaid Heavy
Percentile within cluster: P69. High Medicaid dependence creates reimbursement risk. Assess DSH payments and state expansion status.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| WESTERN PEAKS SPECIALTY HOSPITAL | UT | 59 |
| HOSPITAL MENONITA AIBONITO | PR | 129 |
| TOPPENISH COMMUNITY HOSPITAL | WA | 47 |
| MINERAL COMMUNITY HOSPITAL | MT | 25 |
| BANNER UNIVERSITY MED CENTER SOUTH | AZ | 132 |
| NORTH COLORADO MEDICAL CENTER | CO | 202 |
Distress Analysis
Risk: High
National distress rate: 49.3%
ID distress rate: 46.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.327 | +0.238 | ▲ risk |
| Occupancy Rate | 0.328 | +0.183 | ▲ risk |
| Net To Gross Ratio | 0.195 | -0.077 | ▼ risk |
| Revenue Per Bed | 1054018.375 | +0.031 | ▲ risk |
| Medicare Day Pct | 0.158 | -0.029 | ▼ risk |
| Beds | 112.000 | -0.005 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $9.1M
Current margin: 24.6%
Projected margin: 32.3%
Grade: C
Comps: 2117
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 | 0.515 | 0.751 | 23.6% | $3.5M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.195 | 0.397 | 20.2% | $2.8M | 65% | 18mo |
| Occupancy Improvement | 0.328 | 0.749 | 42.1% | $2.8M | 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 | 26.1 | [25.0, 75.0] | P35 | 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. |