ML Analysis — RH OF NORTHWEST INDIANA LLC
CCN 152024 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
37
/ 100 (D)
Financial Health12/25
RCM Upside11/25
Market Position2/20
Demand Defensibility9/15
Operational Efficiency3/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
Catalysts:
Margin Prediction (Trained Ridge Model)
-3.6%
R²=0.34 | n=4,907 | Grade B | Actual: 6.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-31.9%, 24.7%]. P53 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 454424.033 | -0.1570 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 424086.967 | +0.1519 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.055 | +0.0422 | Higher Reimbursement Quality increases predicted m | |
| Net-to-Gross | 0.117 | -0.0282 | Lower Net-to-Gross decreases predicted margin | |
| State Peer Margin | -0.011 | +0.0255 | Higher State Peer Margin increases predicted margi |
nan%
Distress Risk
$5.1M
RCM Opportunity
A
Opportunity Grade
25.1%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
IN distress rate: 42.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.606 | -0.075 | ▼ risk |
| Medicare Day Pct | 0.533 | +0.035 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.118 | -0.112 | ▼ risk |
| Revenue Per Bed | 454424.033 | +0.066 | ▲ risk |
| Beds | 61.000 | -0.012 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.1M
Current margin: 6.7%
Projected margin: 25.1%
Grade: A
Comps: 72
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 | 0.467 | 0.703 | 23.6% | $3.5M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.118 | 0.437 | 31.9% | $1.0M | 65% | 18mo |
| Occupancy Improvement | 0.606 | 0.689 | 8.2% | $545K | 55% | 24mo |
Predicted RCM Performance (Public Data Only)
B
RCM Grade
Average RCM profile — some improvement opportunities. Standard diligence scope recommended.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 25.0% | [2.0%, 25.0%] | P83 | Below average — denial rate suggests RCM improvement opportu |
| Days in AR | 75.0 | [25.0, 75.0] | P83 | Below average — days in ar suggests RCM improvement opportun |
| 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. |