ML Analysis — DEACONESS HOSPITAL
CCN 150082 | 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.
67
/ 100 (B)
Financial Health17/25
RCM Upside15/25
Market Position13/20
Demand Defensibility15/15
Operational Efficiency7/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
1.6%
R²=0.34 | n=4,907 | Grade B | Actual: 0.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-26.7%, 29.9%]. P66 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2090770.139 | +0.0714 | Higher Revenue/Bed increases predicted margin | |
| Bed Count | 545.000 | -0.0618 | Higher Bed Count decreases predicted margin | |
| Expense/Bed | 2075807.407 | -0.0516 | Higher Expense/Bed decreases predicted margin | |
| Log(Beds) | 6.301 | +0.0448 | Higher Log(Beds) increases predicted margin | |
| Bed Utilization Value | 1652740.940 | +0.0259 | Higher Bed Utilization Value increases predicted m |
Suburban Community Hospit
Archetype
42.1%
Distress Risk
$1.8M
RCM Opportunity
D
Opportunity Grade
0.9%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P91. 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%
IN distress rate: 42.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.790 | -0.246 | ▼ risk |
| Beds | 545.000 | +0.053 | ▲ risk |
| Medicaid Day Pct | 0.039 | -0.050 | ▼ risk |
| Revenue Per Bed | 2090770.139 | -0.030 | ▼ risk |
| Net To Gross Ratio | 0.318 | -0.023 | ▼ risk |
| Medicare Day Pct | 0.344 | +0.003 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.8M
Current margin: 0.7%
Projected margin: 0.9%
Grade: D
Comps: 12
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 | 0.617 | 0.739 | 12.2% | $1.8M | 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. |