ML Analysis — ASSURANCE HEALTH INDIANAPOLIS
CCN 154064 | 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.
42
/ 100 (D)
Financial Health15/25
RCM Upside7/25
Market Position5/20
Demand Defensibility6/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
Catalysts:
Margin Prediction (Trained Ridge Model)
2.4%
R²=0.34 | n=4,907 | Grade B | Actual: 12.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-25.9%, 30.7%]. P68 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 313062.442 | -0.1768 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 272806.209 | +0.1705 | Higher Expense/Bed increases predicted margin | |
| Net-to-Gross | 0.603 | +0.0263 | Higher Net-to-Gross increases predicted margin | |
| State Peer Margin | -0.011 | +0.0255 | Higher State Peer Margin increases predicted margi | |
| Occupancy × Net-to-Gross | 0.503 | +0.0236 | Higher Occupancy × Net-to-Gross increases predicte |
Rural/Critical Access
Archetype
46.6%
Distress Risk
$7.0M
RCM Opportunity
A
Opportunity Grade
65.1%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P98. 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: Elevated
National distress rate: 49.3%
IN distress rate: 42.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.834 | -0.287 | ▼ risk |
| Net To Gross Ratio | 0.603 | +0.105 | ▲ risk |
| Revenue Per Bed | 313062.442 | +0.075 | ▲ risk |
| Medicare Day Pct | 0.754 | +0.073 | ▲ risk |
| Medicaid Day Pct | 0.029 | -0.060 | ▼ risk |
| Beds | 43.000 | -0.014 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.0M
Current margin: 12.9%
Projected margin: 65.1%
Grade: A
Comps: 89
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 | 0.217 | 0.687 | 46.9% | $7.0M | 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. |