ML Analysis — WESTERN MASSACHUSETTS HOSPITAL
CCN 222023 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Pass — risk/return profile does not justify PE capital deployment at market multiples.
17
/ 100 (F)
Financial Health0/25
RCM Upside5/25
Market Position4/20
Demand Defensibility8/15
Operational Efficiency0/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
Catalysts:
Margin Prediction (Trained Ridge Model)
-29.0%
R²=0.34 | n=4,907 | Grade B
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-57.3%, -0.7%]. P13 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 0.000 | -0.2205 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 304155.126 | +0.1667 | Higher Expense/Bed increases predicted margin | |
| Medicaid % | 0.898 | -0.0979 | Higher Medicaid % decreases predicted margin | |
| Reimbursement Quality | 0.000 | +0.0580 | Higher Reimbursement Quality increases predicted m | |
| State Peer Margin | -0.122 | -0.0566 | Lower State Peer Margin decreases predicted margin |
nan%
Distress Risk
$10.2M
RCM Opportunity
D
Opportunity Grade
nan%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
MA distress rate: 61.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.768 | -0.226 | ▼ risk |
| Medicare Day Pct | nan | +nan | ▼ risk |
| Medicaid Day Pct | 0.898 | +0.808 | ▲ risk |
| Revenue Per Bed | nan | +nan | ▼ risk |
| Net To Gross Ratio | nan | +nan | ▼ risk |
| Beds | 87.000 | -0.008 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $10.2M
Current margin: nan%
Projected margin: nan%
Grade: D
Comps: 47
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 | 0.102 | 0.746 | 64.4% | $9.7M | 50% | 24mo |
| Occupancy Improvement | 0.768 | 0.843 | 7.4% | $492K | 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. |