ML Analysis — WEST CARROLL HEALTH SYSTEMS LLC
CCN 190081 | 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.
55
/ 100 (C)
Financial Health12/25
RCM Upside11/25
Market Position15/20
Demand Defensibility9/15
Operational Efficiency9/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-4.4%
R²=0.34 | n=4,907 | Grade B | Actual: 6.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-32.7%, 23.9%]. P51 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1077624.733 | +0.0714 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1156007.233 | -0.0591 | Lower Revenue/Bed decreases predicted margin | |
| Reimbursement Quality | 0.312 | -0.0319 | Higher Reimbursement Quality decreases predicted m | |
| Net-to-Gross | 0.614 | +0.0275 | Higher Net-to-Gross increases predicted margin | |
| Log(Beds) | 3.401 | -0.0226 | Lower Log(Beds) decreases predicted margin |
Suburban Community Hospit
Archetype
51.4%
Distress Risk
$4.6M
RCM Opportunity
B
Opportunity Grade
20.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P6. 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 |
|---|---|---|---|
| Net To Gross Ratio | 0.614 | +0.109 | ▲ risk |
| Medicaid Day Pct | 0.047 | -0.041 | ▼ risk |
| Revenue Per Bed | 1156007.233 | +0.025 | ▲ risk |
| Medicare Day Pct | 0.444 | +0.020 | ▲ risk |
| Beds | 30.000 | -0.016 | ▼ risk |
| Occupancy Rate | 0.538 | -0.012 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.6M
Current margin: 6.8%
Projected margin: 20.0%
Grade: B
Comps: 137
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 | 0.509 | 0.749 | 24.0% | $3.6M | 50% | 24mo |
| Occupancy Improvement | 0.538 | 0.688 | 15.0% | $992K | 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 | 26.5 | [25.0, 75.0] | P37 | 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. |