ML Analysis — LAFAYETTE PHYSICAL REHAB
CCN 193093 | 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 Health9/25
RCM Upside14/25
Market Position4/20
Demand Defensibility5/15
Operational Efficiency5/15
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)
-3.6%
R²=0.34 | n=4,907 | Grade B | Actual: 4.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-31.9%, 24.7%]. P53 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 362085.750 | -0.1699 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 347123.812 | +0.1614 | Higher Expense/Bed increases predicted margin | |
| Net-to-Gross | 0.661 | +0.0328 | Higher Net-to-Gross increases predicted margin | |
| Bed Utilization Value | 227078.606 | -0.0214 | Lower Bed Utilization Value decreases predicted ma | |
| Log(Beds) | 3.466 | -0.0211 | Lower Log(Beds) decreases predicted margin |
nan%
Distress Risk
$6.5M
RCM Opportunity
A
Opportunity Grade
60.0%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
LA distress rate: 46.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.627 | -0.095 | ▼ risk |
| Medicare Day Pct | 0.648 | +0.055 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.661 | +0.130 | ▲ risk |
| Revenue Per Bed | 362085.750 | +0.072 | ▲ risk |
| Beds | 32.000 | -0.016 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.5M
Current margin: 4.1%
Projected margin: 60.0%
Grade: A
Comps: 134
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 | 0.352 | 0.753 | 40.1% | $6.0M | 50% | 24mo |
| Occupancy Improvement | 0.627 | 0.698 | 7.0% | $465K | 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. |