ML Analysis — ST ELIZABETH FT THOMAS
CCN 180001 | 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.
56
/ 100 (C)
Financial Health9/25
RCM Upside20/25
Market Position15/20
Demand Defensibility10/15
Operational Efficiency2/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-3.0%
R²=0.34 | n=4,907 | Grade B | Actual: -9.6%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-31.3%, 25.3%]. P55 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 970910.109 | -0.0849 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1063920.664 | +0.0731 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.006 | +0.0295 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 4.852 | +0.0111 | Higher Log(Beds) increases predicted margin | |
| Medicaid % | 0.011 | +0.0094 | Higher Medicaid % increases predicted margin |
Turnaround: 45%Turnaround possible (45%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Suburban Community Hospit
Archetype
45.1%
Distress Risk
$4.8M
RCM Opportunity
D
Opportunity Grade
-5.8%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P45. 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%
KY distress rate: 45.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.622 | -0.090 | ▼ risk |
| Medicaid Day Pct | 0.011 | -0.078 | ▼ risk |
| Revenue Per Bed | 970910.109 | +0.036 | ▲ risk |
| Net To Gross Ratio | 0.309 | -0.026 | ▼ risk |
| Medicare Day Pct | 0.274 | -0.009 | ▼ risk |
| Beds | 128.000 | -0.003 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.8M
Current margin: -9.6%
Projected margin: -5.8%
Grade: D
Comps: 40
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 | 0.715 | 0.872 | 15.7% | $2.4M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.309 | 0.444 | 13.4% | $2.0M | 65% | 18mo |
| Occupancy Improvement | 0.622 | 0.690 | 6.9% | $452K | 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 | 25.1 | [25.0, 75.0] | P28 | 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. |