ML Analysis — ZACHARY-AMG SPECIALTY HOSPITAL
CCN 192041 | 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.
44
/ 100 (D)
Financial Health16/25
RCM Upside5/25
Market Position4/20
Demand Defensibility10/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
Margin Prediction (Trained Ridge Model)
-5.0%
R²=0.34 | n=4,907 | Grade B | Actual: 22.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-33.2%, 23.4%]. P50 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 376633.938 | +0.1578 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 488482.188 | -0.1523 | Lower Revenue/Bed decreases predicted margin | |
| Log(Beds) | 2.773 | -0.0372 | Lower Log(Beds) decreases predicted margin | |
| Bed Count | 16.000 | +0.0207 | Higher Bed Count increases predicted margin | |
| Bed Utilization Value | 369205.544 | -0.0167 | Lower Bed Utilization Value decreases predicted ma |
nan%
Distress Risk
$3.1M
RCM Opportunity
A
Opportunity Grade
62.2%
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 | 0.756 | -0.214 | ▼ risk |
| Medicare Day Pct | 0.465 | +0.024 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 488482.188 | +0.064 | ▲ risk |
| Net To Gross Ratio | 0.433 | +0.029 | ▲ risk |
| Beds | 16.000 | -0.018 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.1M
Current margin: 22.9%
Projected margin: 62.2%
Grade: A
Comps: 95
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 | 0.535 | 0.729 | 19.4% | $2.9M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.433 | 0.614 | 18.1% | $166K | 65% | 18mo |
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. |