ML Analysis — MMO REHAB AND WELLNESS CENTER
CCN 193070 | 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 Health16/25
RCM Upside5/25
Market Position4/20
Demand Defensibility5/15
Operational Efficiency9/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
Catalysts:
Margin Prediction (Trained Ridge Model)
-1.3%
R²=0.34 | n=4,907 | Grade B | Actual: 35.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-29.6%, 27.0%]. P59 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 422292.300 | +0.1521 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 658447.800 | -0.1285 | Lower Revenue/Bed decreases predicted margin | |
| Reimbursement Quality | 0.010 | +0.0551 | Higher Reimbursement Quality increases predicted m | |
| Log(Beds) | 2.303 | -0.0481 | Lower Log(Beds) decreases predicted margin | |
| Commercial % | 0.019 | -0.0230 | Lower Commercial % decreases predicted margin |
Rural/Critical Access
Archetype
54.6%
Distress Risk
$12.3M
RCM Opportunity
A
Opportunity Grade
223.3%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P100. 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: High
National distress rate: 49.3%
LA distress rate: 46.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicare Day Pct | 0.887 | +0.096 | ▲ risk |
| Net To Gross Ratio | 0.521 | +0.068 | ▲ risk |
| Revenue Per Bed | 658447.800 | +0.054 | ▲ risk |
| Beds | 10.000 | -0.019 | ▼ risk |
| Occupancy Rate | 0.515 | +0.009 | ▲ risk |
| Medicaid Day Pct | 0.094 | +0.005 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $12.3M
Current margin: 35.9%
Projected margin: 223.3%
Grade: A
Comps: 36
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 | 0.019 | 0.711 | 69.2% | $10.4M | 50% | 24mo |
| Occupancy Improvement | 0.515 | 0.795 | 27.9% | $1.8M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.521 | 0.668 | 14.6% | $113K | 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 | 32.4 | [25.0, 75.0] | P71 | 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. |