ML Analysis — UNION COUNTY HOSPITAL DISTRICT
CCN 141342 | 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.
47
/ 100 (C)
Financial Health4/25
RCM Upside19/25
Market Position14/20
Demand Defensibility5/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-13.9%
R²=0.34 | n=4,907 | Grade B | Actual: -39.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-42.2%, 14.4%]. P29 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 1100578.360 | -0.0668 | Lower Revenue/Bed decreases predicted margin | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin | |
| Reimbursement Quality | 0.123 | +0.0225 | Higher Reimbursement Quality increases predicted m | |
| Bed Count | 25.000 | +0.0193 | Higher Bed Count increases predicted margin | |
| Bed Utilization Value | 378971.639 | -0.0164 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 27%Low turnaround probability (27%). Structural disadvantages in Revenue/Bed and Log(Beds).
Rural/Critical Access
Archetype
51.8%
Distress Risk
$2.3M
RCM Opportunity
C
Opportunity Grade
-30.7%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P78. 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%
IL distress rate: 51.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.344 | +0.168 | ▲ risk |
| Medicaid Day Pct | 0.001 | -0.088 | ▼ risk |
| Medicare Day Pct | 0.576 | +0.043 | ▲ risk |
| Net To Gross Ratio | 0.292 | -0.034 | ▼ risk |
| Revenue Per Bed | 1100578.360 | +0.028 | ▲ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.3M
Current margin: -39.1%
Projected margin: -30.7%
Grade: C
Comps: 74
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 | 0.423 | 0.504 | 8.1% | $1.2M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.292 | 0.488 | 19.6% | $632K | 65% | 18mo |
| Occupancy Improvement | 0.344 | 0.415 | 7.0% | $466K | 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 | 35.4 | [25.0, 75.0] | P79 | Average — predicted days in ar is near the median. |
| Clean Claim Rate | 98.0% | [80.0%, 98.0%] | P0 | Strong — predicted clean claim rate is in the top third. |
| Net Collection Rate | 99.0% | [90.0%, 99.5%] | P4 | Strong — predicted net collection rate is in the top third. |