ML Analysis — REID HOSPITAL & HEALTH CARE SERVICES
CCN 150048 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Buy — solid fundamentals with identifiable value creation levers. Proceed to detailed diligence.
64
/ 100 (B)
Financial Health19/25
RCM Upside5/25
Market Position15/20
Demand Defensibility12/15
Operational Efficiency13/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
13.3%
R²=0.34 | n=4,907 | Grade B | Actual: 26.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-15.0%, 41.6%]. P87 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2662201.557 | +0.1512 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 1966694.410 | -0.0381 | Higher Expense/Bed decreases predicted margin | |
| Bed Utilization Value | 1696722.547 | +0.0273 | Higher Bed Utilization Value increases predicted m | |
| State Peer Margin | -0.011 | +0.0255 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 5.210 | +0.0194 | Higher Log(Beds) increases predicted margin |
Suburban Community Hospit
Archetype
44.3%
Distress Risk
$2.5M
RCM Opportunity
D
Opportunity Grade
26.6%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P71. 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: Elevated
National distress rate: 49.3%
IN distress rate: 42.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.637 | -0.104 | ▼ risk |
| Medicaid Day Pct | 0.022 | -0.066 | ▼ risk |
| Revenue Per Bed | 2662201.557 | -0.064 | ▼ risk |
| Net To Gross Ratio | 0.406 | +0.017 | ▲ risk |
| Medicare Day Pct | 0.396 | +0.012 | ▲ risk |
| Beds | 183.000 | +0.005 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.5M
Current margin: 26.1%
Projected margin: 26.6%
Grade: D
Comps: 46
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 | 0.582 | 0.725 | 14.3% | $2.2M | 50% | 24mo |
| Occupancy Improvement | 0.637 | 0.689 | 5.2% | $342K | 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. |