ML Analysis — STEWARD ST. ANNES HOSPITAL
CCN 220020 | 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.
60
/ 100 (C)
Financial Health18/25
RCM Upside7/25
Market Position11/20
Demand Defensibility13/15
Operational Efficiency11/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-3.8%
R²=0.34 | n=4,907 | Grade B | Actual: 12.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-32.1%, 24.5%]. P52 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | -0.122 | -0.0566 | Lower State Peer Margin decreases predicted margin | |
| Revenue/Bed | 1841794.531 | +0.0366 | Higher Revenue/Bed increases predicted margin | |
| Log(Beds) | 5.165 | +0.0184 | Higher Log(Beds) increases predicted margin | |
| Bed Utilization Value | 1227046.048 | +0.0117 | Higher Bed Utilization Value increases predicted m | |
| Occupancy | 0.666 | +0.0080 | Higher Occupancy increases predicted margin |
Suburban Community Hospit
Archetype
46.5%
Distress Risk
$7.6M
RCM Opportunity
D
Opportunity Grade
15.2%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P32. 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%
MA distress rate: 61.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.666 | -0.131 | ▼ risk |
| Revenue Per Bed | 1841794.531 | -0.015 | ▼ risk |
| Net To Gross Ratio | 0.403 | +0.015 | ▲ risk |
| Medicare Day Pct | 0.380 | +0.009 | ▲ risk |
| Medicaid Day Pct | 0.095 | +0.007 | ▲ risk |
| Beds | 175.000 | +0.004 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.6M
Current margin: 12.8%
Projected margin: 15.2%
Grade: D
Comps: 55
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.403 | 0.530 | 12.7% | $4.8M | 65% | 18mo |
| Payer Mix Optimization | 0.524 | 0.645 | 12.1% | $1.8M | 50% | 24mo |
| Occupancy Improvement | 0.666 | 0.817 | 15.0% | $992K | 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. |