ML Analysis — VIA CHRISTI HOSP. WICHITA ST. TERESA
CCN 170200 | 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.
46
/ 100 (C)
Financial Health16/25
RCM Upside5/25
Market Position11/20
Demand Defensibility7/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-10.5%
R²=0.34 | n=4,907 | Grade B | Actual: 16.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-38.8%, 17.8%]. P36 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | -0.177 | -0.0972 | Lower State Peer Margin decreases predicted margin | |
| Expense/Bed | 1206959.447 | +0.0555 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.106 | +0.0273 | Higher Reimbursement Quality increases predicted m | |
| Revenue/Bed | 1448685.553 | -0.0182 | Lower Revenue/Bed decreases predicted margin | |
| Bed Count | 38.000 | +0.0173 | Higher Bed Count increases predicted margin |
Suburban Community Hospit
Archetype
45.3%
Distress Risk
$5.2M
RCM Opportunity
C
Opportunity Grade
26.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P46. 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%
KS distress rate: 76.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.595 | -0.065 | ▼ risk |
| Medicaid Day Pct | 0.025 | -0.063 | ▼ risk |
| Net To Gross Ratio | 0.236 | -0.059 | ▼ risk |
| Medicare Day Pct | 0.523 | +0.034 | ▲ risk |
| Beds | 38.000 | -0.015 | ▼ risk |
| Revenue Per Bed | 1448685.553 | +0.008 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.2M
Current margin: 16.7%
Projected margin: 26.1%
Grade: C
Comps: 93
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.236 | 0.765 | 52.9% | $3.4M | 65% | 18mo |
| Payer Mix Optimization | 0.452 | 0.571 | 12.0% | $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 | 28.1 | [25.0, 75.0] | P45 | 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. |