ML Analysis — CORNERSTONE SPECIALTY BOSSIER CITY
CCN 192006 | 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.
37
/ 100 (D)
Financial Health6/25
RCM Upside18/25
Market Position8/20
Demand Defensibility5/15
Operational Efficiency0/15
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
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-6.3%
R²=0.34 | n=4,907 | Grade B | Actual: -3.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-34.6%, 22.0%]. P46 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 365676.954 | -0.1694 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 376909.349 | +0.1577 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.051 | +0.0434 | Higher Reimbursement Quality increases predicted m | |
| Bed Utilization Value | 209294.430 | -0.0220 | Lower Bed Utilization Value decreases predicted ma | |
| Net-to-Gross | 0.189 | -0.0202 | Lower Net-to-Gross decreases predicted margin |
Turnaround: 39%Turnaround possible (39%) but uncertain. Margin improvement depends on improving Revenue/Bed.
nan%
Distress Risk
$8.7M
RCM Opportunity
A
Opportunity Grade
52.5%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
LA distress rate: 46.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 0.188 | -0.080 | ▼ risk |
| Medicare Day Pct | 0.732 | +0.070 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 365676.953 | +0.072 | ▲ risk |
| Occupancy Rate | 0.572 | -0.044 | ▼ risk |
| Beds | 43.000 | -0.014 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $8.7M
Current margin: -3.1%
Projected margin: 52.5%
Grade: A
Comps: 115
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 | 0.268 | 0.775 | 50.7% | $7.6M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.188 | 0.523 | 33.4% | $615K | 65% | 18mo |
| Occupancy Improvement | 0.572 | 0.649 | 7.7% | $507K | 55% | 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. |