ML Analysis — CLAY COUNTY MEDICAL CENTER
CCN 171371 | 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.
39
/ 100 (D)
Financial Health2/25
RCM Upside19/25
Market Position8/20
Demand Defensibility4/15
Operational Efficiency6/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
- Expenses exceed revenue
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-16.9%
R²=0.34 | n=4,907 | Grade B | Actual: -14.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-45.2%, 11.4%]. P25 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | -0.177 | -0.0972 | Lower State Peer Margin decreases predicted margin | |
| Log(Beds) | 2.996 | -0.0320 | Lower Log(Beds) decreases predicted margin | |
| Net-to-Gross | 0.560 | +0.0214 | Higher Net-to-Gross increases predicted margin | |
| Bed Count | 20.000 | +0.0201 | Higher Bed Count increases predicted margin | |
| Commercial % | 0.295 | -0.0118 | Lower Commercial % decreases predicted margin |
Turnaround: 23%Low turnaround probability (23%). Structural disadvantages in State Peer Margin and Log(Beds).
nan%
Distress Risk
$4.3M
RCM Opportunity
A
Opportunity Grade
-0.3%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
KS distress rate: 76.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.394 | +0.122 | ▲ risk |
| Medicare Day Pct | 0.705 | +0.065 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.560 | +0.085 | ▲ risk |
| Beds | 20.000 | -0.017 | ▼ risk |
| Revenue Per Bed | 1523440.700 | +0.003 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.3M
Current margin: -14.5%
Projected margin: -0.3%
Grade: A
Comps: 108
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 | 0.295 | 0.516 | 22.2% | $3.3M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.560 | 0.825 | 26.5% | $945K | 65% | 18mo |
| Occupancy Improvement | 0.394 | 0.403 | 0.9% | $63K | 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. |