ML Analysis — HAMMOND SURGICAL LLC
CCN 190303 | 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 Health5/25
RCM Upside16/25
Market Position8/20
Demand Defensibility4/15
Operational Efficiency2/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-10.5%
R²=0.34 | n=4,907 | Grade B | Actual: -1.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-38.8%, 17.8%]. P36 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1201280.500 | +0.0562 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1180550.367 | -0.0557 | Lower Revenue/Bed decreases predicted margin | |
| Bed Utilization Value | 113958.149 | -0.0252 | Lower Bed Utilization Value decreases predicted ma | |
| Occupancy | 0.097 | -0.0244 | Lower Occupancy decreases predicted margin | |
| Log(Beds) | 3.401 | -0.0226 | Lower Log(Beds) decreases predicted margin |
Turnaround: 32%Turnaround possible (32%) but uncertain. Margin improvement depends on Expense/Bed.
nan%
Distress Risk
$5.8M
RCM Opportunity
A
Opportunity Grade
14.7%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
LA distress rate: 46.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.097 | +0.398 | ▲ risk |
| Medicare Day Pct | 0.274 | -0.009 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.200 | -0.075 | ▼ risk |
| Revenue Per Bed | 1180550.367 | +0.024 | ▲ risk |
| Beds | 30.000 | -0.016 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.8M
Current margin: -1.8%
Projected margin: 14.7%
Grade: A
Comps: 137
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.097 | 0.688 | 59.2% | $3.9M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.200 | 0.581 | 38.1% | $1.6M | 65% | 18mo |
| Payer Mix Optimization | 0.726 | 0.749 | 2.3% | $347K | 50% | 24mo |
Predicted RCM Performance (Public Data Only)
B
RCM Grade
Average RCM profile — some improvement opportunities. Standard diligence scope recommended.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 25.0% | [2.0%, 25.0%] | P83 | Below average — denial rate suggests RCM improvement opportu |
| Days in AR | 75.0 | [25.0, 75.0] | P83 | Below average — days in ar suggests RCM improvement opportun |
| 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. |