ML Analysis — JACKSONVILLE MEMORIAL HOSPITAL
CCN 140058 | 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.
48
/ 100 (C)
Financial Health5/25
RCM Upside18/25
Market Position15/20
Demand Defensibility10/15
Operational Efficiency0/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
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)
-10.0%
R²=0.34 | n=4,907 | Grade B | Actual: -7.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-38.3%, 18.3%]. P37 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 576907.462 | -0.1399 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 617519.585 | +0.1281 | Higher Expense/Bed increases predicted margin | |
| Bed Utilization Value | 163223.112 | -0.0235 | Lower Bed Utilization Value decreases predicted ma | |
| Reimbursement Quality | 0.153 | +0.0141 | Higher Reimbursement Quality increases predicted m | |
| Occupancy | 0.283 | -0.0138 | Lower Occupancy decreases predicted margin |
Turnaround: 33%Turnaround possible (33%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Suburban Community Hospit
Archetype
53.1%
Distress Risk
$5.2M
RCM Opportunity
C
Opportunity Grade
1.5%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P58. 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%
IL distress rate: 51.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.283 | +0.225 | ▲ risk |
| Medicaid Day Pct | 0.010 | -0.079 | ▼ risk |
| Revenue Per Bed | 576907.462 | +0.059 | ▲ risk |
| Net To Gross Ratio | 0.247 | -0.054 | ▼ risk |
| Medicare Day Pct | 0.371 | +0.008 | ▲ risk |
| Beds | 106.000 | -0.006 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.2M
Current margin: -7.0%
Projected margin: 1.5%
Grade: C
Comps: 80
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.283 | 0.692 | 40.9% | $2.7M | 55% | 24mo |
| Payer Mix Optimization | 0.619 | 0.736 | 11.7% | $1.8M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.247 | 0.357 | 11.1% | $790K | 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 | 28.3 | [25.0, 75.0] | P45 | 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. |