ML Analysis — LIFECARE SPECIALTY HOSPITAL OF N. LA
CCN 192022 | 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.
47
/ 100 (C)
Financial Health10/25
RCM Upside15/25
Market Position11/20
Demand Defensibility6/15
Operational Efficiency5/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-2.5%
R²=0.34 | n=4,907 | Grade B | Actual: 2.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-30.8%, 25.8%]. P56 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 525834.367 | -0.1471 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 513877.000 | +0.1408 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.097 | +0.0301 | Higher Reimbursement Quality increases predicted m | |
| Log(Beds) | 3.401 | -0.0226 | Lower Log(Beds) decreases predicted margin | |
| Bed Count | 30.000 | +0.0185 | Higher Bed Count increases predicted margin |
Rural/Critical Access
Archetype
47.8%
Distress Risk
$8.3M
RCM Opportunity
A
Opportunity Grade
55.1%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P92. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| DAYTON GENERAL HOSPITAL | WA | 25 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
LA distress rate: 46.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.755 | -0.213 | ▼ risk |
| Medicare Day Pct | 0.706 | +0.065 | ▲ risk |
| Revenue Per Bed | 525834.367 | +0.062 | ▲ risk |
| Net To Gross Ratio | 0.465 | +0.043 | ▲ risk |
| Beds | 30.000 | -0.016 | ▼ risk |
| Medicaid Day Pct | 0.086 | -0.003 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $8.3M
Current margin: 2.3%
Projected margin: 55.1%
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 |
|---|---|---|---|---|---|---|
| Payer Mix Optimization | 0.208 | 0.749 | 54.1% | $8.1M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.465 | 0.581 | 11.6% | $215K | 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 | 29.2 | [25.0, 75.0] | P52 | 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. |