ML Analysis — MEMORIAL HOSPITAL - ABILENE
CCN 171381 | 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.
41
/ 100 (D)
Financial Health4/25
RCM Upside19/25
Market Position8/20
Demand Defensibility4/15
Operational Efficiency6/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
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)
-17.5%
R²=0.34 | n=4,907 | Grade B | Actual: -27.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-45.8%, 10.8%]. P24 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | -0.177 | -0.0972 | Lower State Peer Margin decreases predicted margin | |
| Reimbursement Quality | 0.086 | +0.0333 | Higher Reimbursement Quality increases predicted m | |
| Log(Beds) | 3.045 | -0.0309 | Lower Log(Beds) decreases predicted margin | |
| Revenue/Bed | 1384556.333 | -0.0272 | Lower Revenue/Bed decreases predicted margin | |
| Net-to-Gross | 0.557 | +0.0212 | Higher Net-to-Gross increases predicted margin |
Turnaround: 22%Low turnaround probability (22%). Structural disadvantages in State Peer Margin and Reimbursement Quality.
nan%
Distress Risk
$6.8M
RCM Opportunity
A
Opportunity Grade
-4.2%
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 | 0.373 | +0.141 | ▲ risk |
| Medicare Day Pct | 0.846 | +0.089 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.557 | +0.084 | ▲ risk |
| Beds | 21.000 | -0.017 | ▼ risk |
| Revenue Per Bed | 1384556.333 | +0.011 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.8M
Current margin: -27.4%
Projected margin: -4.2%
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 | 0.154 | 0.531 | 37.8% | $5.7M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.557 | 0.820 | 26.2% | $893K | 65% | 18mo |
| Occupancy Improvement | 0.373 | 0.403 | 3.0% | $197K | 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. |