ML Analysis — RIVEREDGE HOSPITAL
CCN 144009 | 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 Health16/25
RCM Upside5/25
Market Position9/20
Demand Defensibility10/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-13.3%
R²=0.34 | n=4,907 | Grade B | Actual: 24.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-41.6%, 15.0%]. P30 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 232337.171 | -0.1880 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 175703.262 | +0.1825 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.603 | -0.1155 | Higher Reimbursement Quality decreases predicted m | |
| Net-to-Gross | 0.673 | +0.0341 | Higher Net-to-Gross increases predicted margin | |
| Bed Utilization Value | 120512.215 | -0.0250 | Lower Bed Utilization Value decreases predicted ma |
Suburban Community Hospit
Archetype
52.4%
Distress Risk
$1.3M
RCM Opportunity
D
Opportunity Grade
27.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P88. 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 |
|---|---|---|---|
| Net To Gross Ratio | 0.673 | +0.135 | ▲ risk |
| Revenue Per Bed | 232337.171 | +0.080 | ▲ risk |
| Medicaid Day Pct | 0.026 | -0.063 | ▼ risk |
| Medicare Day Pct | 0.077 | -0.043 | ▼ risk |
| Beds | 210.000 | +0.008 | ▲ risk |
| Occupancy Rate | 0.519 | +0.006 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.3M
Current margin: 24.4%
Projected margin: 27.0%
Grade: D
Comps: 90
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.519 | 0.715 | 19.7% | $1.3M | 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 | 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. |