ML Analysis — UNIVERSITY OF MARYLAND MED SYS
CCN 210002 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Buy — solid fundamentals with identifiable value creation levers. Proceed to detailed diligence.
61
/ 100 (B)
Financial Health10/25
RCM Upside19/25
Market Position11/20
Demand Defensibility13/15
Operational Efficiency8/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-25.3%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-53.6%, 3.0%]. P15 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 3704114.339 | -0.2522 | Higher Expense/Bed decreases predicted margin | |
| Revenue/Bed | 2374694.603 | +0.1110 | Higher Revenue/Bed increases predicted margin | |
| Reimbursement Quality | 0.579 | -0.1086 | Higher Reimbursement Quality decreases predicted m | |
| Bed Count | 779.000 | -0.0983 | Higher Bed Count decreases predicted margin | |
| Net-to-Gross | 0.866 | +0.0558 | Higher Net-to-Gross increases predicted margin |
Turnaround: 14%Low turnaround probability (14%). Structural disadvantages in Expense/Bed and Revenue/Bed.
Large Academic Medical Ce
Archetype
50.6%
Distress Risk
$2.1M
RCM Opportunity
D
Opportunity Grade
-49.9%
Projected Margin
Cluster: Large Academic Medical Center
Percentile within cluster: P61. Large medical centers trade at premium multiples (12-14x). Limited PE value creation but strong cash flow.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| NORTH CAROLINA BAPTIST HOSPITAL | NC | 800 |
| HACKENSACK UNIVERSITY MEDICAL CENTER | NJ | 779 |
| TEMPLE UNIVERSITY HOSPITAL | PA | 761 |
| VCU HEALTH SYSTEM MCV HOSPITAL | VA | 842 |
| UH CLEVELAND MEDICAL CENTER | OH | 660 |
| FROEDTERT MEM. LUTHERAN HOSPT. | WI | 731 |
Distress Analysis
Risk: High
National distress rate: 49.3%
MD distress rate: 60.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 0.866 | +0.222 | ▲ risk |
| Occupancy Rate | 0.720 | -0.180 | ▼ risk |
| Beds | 779.000 | +0.084 | ▲ risk |
| Revenue Per Bed | 2374694.603 | -0.047 | ▼ risk |
| Medicaid Day Pct | 0.072 | -0.017 | ▼ risk |
| Medicare Day Pct | 0.259 | -0.012 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.1M
Current margin: -50.0%
Projected margin: -49.9%
Grade: D
Comps: 431
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 | 0.668 | 0.758 | 9.0% | $1.3M | 50% | 24mo |
| Occupancy Improvement | 0.720 | 0.832 | 11.2% | $741K | 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. |