ML Analysis — JOHNSON COUNTY REHABILITATION HOSPIT
CCN 173034 | 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.
35
/ 100 (D)
Financial Health2/25
RCM Upside19/25
Market Position5/20
Demand Defensibility5/15
Operational Efficiency4/15
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:
Margin Prediction (Trained Ridge Model)
-15.1%
R²=0.34 | n=4,907 | Grade B | Actual: -6.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-43.4%, 13.2%]. P28 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 366284.325 | -0.1693 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 388761.900 | +0.1563 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.177 | -0.0972 | Lower State Peer Margin decreases predicted margin | |
| Reimbursement Quality | 0.120 | +0.0236 | Higher Reimbursement Quality increases predicted m | |
| Bed Utilization Value | 206356.669 | -0.0221 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 26%Low turnaround probability (26%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Rural/Critical Access
Archetype
52.6%
Distress Risk
$5.7M
RCM Opportunity
A
Opportunity Grade
32.8%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P64. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| DAYTON GENERAL HOSPITAL | WA | 25 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
Distress Analysis
Risk: High
National distress rate: 49.3%
KS distress rate: 76.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Revenue Per Bed | 366284.325 | +0.072 | ▲ risk |
| Net To Gross Ratio | 0.521 | +0.068 | ▲ risk |
| Medicare Day Pct | 0.703 | +0.064 | ▲ risk |
| Occupancy Rate | 0.563 | -0.035 | ▼ risk |
| Medicaid Day Pct | 0.068 | -0.021 | ▼ risk |
| Beds | 40.000 | -0.015 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.7M
Current margin: -6.1%
Projected margin: 32.8%
Grade: A
Comps: 91
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 | 0.229 | 0.582 | 35.3% | $5.3M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.521 | 0.763 | 24.1% | $414K | 65% | 18mo |
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 | 28.7 | [25.0, 75.0] | P48 | 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. |