ML Analysis — ST. LUKES REGL MEDICAL CENTER
CCN 160146 | 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.
58
/ 100 (C)
Financial Health11/25
RCM Upside15/25
Market Position14/20
Demand Defensibility11/15
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
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-9.2%
R²=0.34 | n=4,907 | Grade B | Actual: 0.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-37.5%, 19.1%]. P39 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1046319.590 | +0.0753 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1047059.850 | -0.0743 | Lower Revenue/Bed decreases predicted margin | |
| Medicaid % | 0.351 | -0.0317 | Higher Medicaid % decreases predicted margin | |
| State Peer Margin | -0.082 | -0.0269 | Lower State Peer Margin decreases predicted margin | |
| Log(Beds) | 5.153 | +0.0181 | Higher Log(Beds) increases predicted margin |
Safety-Net/Medicaid Heavy
Archetype
52.7%
Distress Risk
$4.1M
RCM Opportunity
D
Opportunity Grade
2.3%
Projected Margin
Cluster: Safety-Net/Medicaid Heavy
Percentile within cluster: P5. High Medicaid dependence creates reimbursement risk. Assess DSH payments and state expansion status.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| WESTERN PEAKS SPECIALTY HOSPITAL | UT | 59 |
| HOSPITAL MENONITA AIBONITO | PR | 129 |
| TOPPENISH COMMUNITY HOSPITAL | WA | 47 |
| MINERAL COMMUNITY HOSPITAL | MT | 25 |
| BANNER UNIVERSITY MED CENTER SOUTH | AZ | 132 |
| NORTH COLORADO MEDICAL CENTER | CO | 202 |
Distress Analysis
Risk: High
National distress rate: 49.3%
IA distress rate: 67.2%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.351 | +0.262 | ▲ risk |
| Occupancy Rate | 0.676 | -0.140 | ▼ risk |
| Revenue Per Bed | 1047059.850 | +0.031 | ▲ risk |
| Medicare Day Pct | 0.249 | -0.013 | ▼ risk |
| Net To Gross Ratio | 0.353 | -0.007 | ▼ risk |
| Beds | 173.000 | +0.003 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.1M
Current margin: 0.1%
Projected margin: 2.3%
Grade: D
Comps: 17
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 | 0.400 | 0.673 | 27.3% | $4.1M | 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. |