ML Analysis — ADVENTIST HINSDALE HOSPITAL
CCN 140122 | 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.
54
/ 100 (C)
Financial Health8/25
RCM Upside19/25
Market Position11/20
Demand Defensibility12/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-8.4%
R²=0.34 | n=4,907 | Grade B | Actual: -14.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-36.7%, 19.9%]. P41 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 1198920.254 | -0.0531 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1375166.074 | +0.0347 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 5.497 | +0.0261 | Higher Log(Beds) increases predicted margin | |
| Bed Count | 244.000 | -0.0149 | Higher Bed Count decreases predicted margin | |
| Net-to-Gross | 0.293 | -0.0085 | Lower Net-to-Gross decreases predicted margin |
Turnaround: 36%Turnaround possible (36%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Suburban Community Hospit
Archetype
47.9%
Distress Risk
$2.6M
RCM Opportunity
D
Opportunity Grade
-13.8%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P37. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| CLARA MAASS MEDICAL CENTER | NJ | 259 |
| PRESENCE SAINTS MARY & ELIZABETH MED | IL | 266 |
| ADVENTIST HEALTH BAKERSFIELD | CA | 254 |
| BRISTOL REGIONAL MEDICAL CENTER | TN | 244 |
| HOLSTON VALLEY HOSP & MED CTR | TN | 286 |
| SPRINGFIELD REGIONAL MEDICAL CENTER | OH | 230 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
IL distress rate: 51.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.034 | -0.055 | ▼ risk |
| Net To Gross Ratio | 0.293 | -0.034 | ▼ risk |
| Revenue Per Bed | 1198920.254 | +0.022 | ▲ risk |
| Beds | 244.000 | +0.013 | ▲ risk |
| Medicare Day Pct | 0.266 | -0.011 | ▼ risk |
| Occupancy Rate | 0.517 | +0.008 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.6M
Current margin: -14.7%
Projected margin: -13.8%
Grade: D
Comps: 87
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.517 | 0.721 | 20.4% | $1.3M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.293 | 0.315 | 2.2% | $740K | 65% | 18mo |
| Payer Mix Optimization | 0.700 | 0.732 | 3.2% | $474K | 50% | 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 | 25.0 | [25.0, 75.0] | P0 | 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. |