ML Analysis — VIA CHRISTI REHAB CENTER INC
CCN 173028 | 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.
49
/ 100 (C)
Financial Health1/25
RCM Upside19/25
Market Position14/20
Demand Defensibility10/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-19.7%
R²=0.34 | n=4,907 | Grade B | Actual: -7.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-48.0%, 8.6%]. P21 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 331461.828 | -0.1742 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 357697.793 | +0.1601 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.177 | -0.0972 | Lower State Peer Margin decreases predicted margin | |
| Bed Utilization Value | 146660.507 | -0.0241 | Lower Bed Utilization Value decreases predicted ma | |
| Bed Count | 58.000 | +0.0142 | Higher Bed Count increases predicted margin |
Turnaround: 20%Low turnaround probability (20%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Suburban Community Hospit
Archetype
55.9%
Distress Risk
$3.1M
RCM Opportunity
A
Opportunity Grade
8.4%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P68. 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: High
National distress rate: 49.3%
KS distress rate: 76.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.171 | +0.082 | ▲ risk |
| Occupancy Rate | 0.442 | +0.077 | ▲ risk |
| Revenue Per Bed | 331461.828 | +0.074 | ▲ risk |
| Net To Gross Ratio | 0.429 | +0.027 | ▲ risk |
| Medicare Day Pct | 0.427 | +0.017 | ▲ risk |
| Beds | 58.000 | -0.012 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.1M
Current margin: -7.9%
Projected margin: 8.4%
Grade: A
Comps: 38
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 | 0.402 | 0.572 | 16.9% | $2.5M | 50% | 24mo |
| Occupancy Improvement | 0.442 | 0.533 | 9.0% | $596K | 55% | 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 | 27.9 | [25.0, 75.0] | P43 | 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. |