ML Analysis — BASTROP REHABILITATION HOSPITAL
CCN 193058 | 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.
39
/ 100 (D)
Financial Health4/25
RCM Upside19/25
Market Position6/20
Demand Defensibility5/15
Operational Efficiency4/15
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
- Expenses exceed revenue
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-8.6%
R²=0.34 | n=4,907 | Grade B | Actual: -22.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-36.9%, 19.7%]. P40 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 343385.667 | -0.1725 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 419969.250 | +0.1524 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 2.485 | -0.0439 | Lower Log(Beds) decreases predicted margin | |
| Bed Utilization Value | 181649.450 | -0.0229 | Lower Bed Utilization Value decreases predicted ma | |
| Bed Count | 12.000 | +0.0213 | Higher Bed Count increases predicted margin |
Turnaround: 35%Turnaround possible (35%) but uncertain. Margin improvement depends on improving Revenue/Bed.
nan%
Distress Risk
$7.4M
RCM Opportunity
A
Opportunity Grade
158.0%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
LA distress rate: 46.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicare Day Pct | 0.657 | +0.057 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 343385.667 | +0.073 | ▲ risk |
| Net To Gross Ratio | 0.498 | +0.058 | ▲ risk |
| Beds | 12.000 | -0.018 | ▼ risk |
| Occupancy Rate | 0.529 | -0.004 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.4M
Current margin: -22.3%
Projected margin: 158.0%
Grade: A
Comps: 55
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 | 0.343 | 0.735 | 39.1% | $5.9M | 50% | 24mo |
| Occupancy Improvement | 0.529 | 0.754 | 22.5% | $1.5M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.498 | 0.649 | 15.0% | $73K | 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. |