ML Analysis — ST. CHARLES PARISH HOSPITAL
CCN 190079 | 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.
46
/ 100 (C)
Financial Health5/25
RCM Upside18/25
Market Position15/20
Demand Defensibility3/15
Operational Efficiency6/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-9.1%
R²=0.34 | n=4,907 | Grade B | Actual: -5.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-37.4%, 19.2%]. P39 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2371498.556 | +0.1106 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2491621.741 | -0.1028 | Higher Expense/Bed decreases predicted margin | |
| Log(Beds) | 3.296 | -0.0251 | Lower Log(Beds) decreases predicted margin | |
| Reimbursement Quality | 0.275 | -0.0210 | Higher Reimbursement Quality decreases predicted m | |
| Bed Count | 27.000 | +0.0190 | Higher Bed Count increases predicted margin |
Turnaround: 34%Turnaround possible (34%) but uncertain. Margin improvement depends on Revenue/Bed.
Suburban Community Hospit
Archetype
50.9%
Distress Risk
$4.9M
RCM Opportunity
C
Opportunity Grade
2.6%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P76. 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%
LA distress rate: 46.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.239 | +0.265 | ▲ risk |
| Medicaid Day Pct | 0.000 | -0.088 | ▼ risk |
| Revenue Per Bed | 2371498.556 | -0.047 | ▼ risk |
| Medicare Day Pct | 0.149 | -0.031 | ▼ risk |
| Net To Gross Ratio | 0.323 | -0.020 | ▼ risk |
| Beds | 27.000 | -0.016 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.9M
Current margin: -5.1%
Projected margin: 2.6%
Grade: C
Comps: 134
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.239 | 0.685 | 44.6% | $2.9M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.323 | 0.582 | 25.9% | $1.9M | 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 | 31.4 | [25.0, 75.0] | P67 | 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. |