ML Analysis — UNIVERSAL BEHAVIORAL HEALTH HOSPITAL
CCN 194117 | 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.
49
/ 100 (C)
Financial Health16/25
RCM Upside5/25
Market Position13/20
Demand Defensibility6/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-11.0%
R²=0.34 | n=4,907 | Grade B | Actual: 43.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-39.3%, 17.3%]. P35 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 222131.583 | -0.1894 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 126325.833 | +0.1886 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.610 | -0.1175 | Higher Reimbursement Quality decreases predicted m | |
| Net-to-Gross | 0.664 | +0.0331 | Higher Net-to-Gross increases predicted margin | |
| Bed Utilization Value | 151637.770 | -0.0239 | Lower Bed Utilization Value decreases predicted ma |
Suburban Community Hospit
Archetype
47.3%
Distress Risk
$65K
RCM Opportunity
D
Opportunity Grade
43.9%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P97. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| PROMEDICA HICKMAN HOSPITAL | MI | 58 |
| WATAUGA MEDICAL CENTER | NC | 95 |
| ST LUKES HOSPITAL - EASTON CAMPUS | PA | 29 |
| CULPEPER MEMORIAL HOSPITAL | VA | 70 |
| SOUTHSIDE COMMUNITY HOSPITAL | VA | 80 |
| SPECTRUM HEALTH LUDINGTON | MI | 45 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
LA distress rate: 46.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.683 | -0.146 | ▼ risk |
| Net To Gross Ratio | 0.664 | +0.132 | ▲ risk |
| Medicaid Day Pct | 0.001 | -0.088 | ▼ risk |
| Revenue Per Bed | 222131.583 | +0.080 | ▲ risk |
| Medicare Day Pct | 0.081 | -0.042 | ▼ risk |
| Beds | 36.000 | -0.015 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $65K
Current margin: 43.1%
Projected margin: 43.9%
Grade: D
Comps: 131
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.683 | 0.692 | 1.0% | $65K | 55% | 24mo |
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 | 25.0 | [25.0, 75.0] | P0 | 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. |