ML Analysis — NORTH CANYON MEDICAL CENTER
CCN 131302 | 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.
53
/ 100 (C)
Financial Health10/25
RCM Upside13/25
Market Position14/20
Demand Defensibility5/15
Operational Efficiency11/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-2.1%
R²=0.34 | n=4,907 | Grade B | Actual: 4.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-30.4%, 26.2%]. P57 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 3358907.812 | +0.2484 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 3213047.125 | -0.1917 | Higher Expense/Bed decreases predicted margin | |
| Log(Beds) | 2.773 | -0.0372 | Lower Log(Beds) decreases predicted margin | |
| Net-to-Gross | 0.571 | +0.0227 | Higher Net-to-Gross increases predicted margin | |
| Bed Count | 16.000 | +0.0207 | Higher Bed Count increases predicted margin |
Rural/Critical Access
Archetype
54.5%
Distress Risk
$2.5M
RCM Opportunity
D
Opportunity Grade
9.0%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P72. 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%
ID distress rate: 46.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.267 | +0.240 | ▲ risk |
| Revenue Per Bed | 3358907.812 | -0.105 | ▼ risk |
| Net To Gross Ratio | 0.571 | +0.090 | ▲ risk |
| Medicare Day Pct | 0.514 | +0.032 | ▲ risk |
| Medicaid Day Pct | 0.058 | -0.030 | ▼ risk |
| Beds | 16.000 | -0.018 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.5M
Current margin: 4.3%
Projected margin: 9.0%
Grade: D
Comps: 29
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.267 | 0.405 | 13.8% | $908K | 55% | 24mo |
| Payer Mix Optimization | 0.428 | 0.485 | 5.7% | $862K | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.571 | 0.691 | 12.0% | $753K | 65% | 18mo |
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 | 30.0 | [25.0, 75.0] | P58 | 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. |