ML Analysis — ASCENSION STANDISH HOSPITAL
CCN 231305 | 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.
47
/ 100 (C)
Financial Health4/25
RCM Upside17/25
Market Position15/20
Demand Defensibility6/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-13.8%
R²=0.34 | n=4,907 | Grade B | Actual: -4.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-42.1%, 14.5%]. P30 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 969779.080 | -0.0851 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1017569.080 | +0.0788 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin | |
| Reimbursement Quality | 0.285 | -0.0241 | Higher Reimbursement Quality decreases predicted m | |
| Bed Utilization Value | 173763.156 | -0.0232 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 27%Low turnaround probability (27%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Suburban Community Hospit
Archetype
57.1%
Distress Risk
$3.1M
RCM Opportunity
B
Opportunity Grade
7.8%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P68. 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: High
National distress rate: 49.3%
MI distress rate: 50.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.179 | +0.321 | ▲ risk |
| Medicaid Day Pct | 0.034 | -0.055 | ▼ risk |
| Revenue Per Bed | 969779.080 | +0.036 | ▲ risk |
| Net To Gross Ratio | 0.439 | +0.031 | ▲ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
| Medicare Day Pct | 0.316 | -0.002 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.1M
Current margin: -4.9%
Projected margin: 7.8%
Grade: B
Comps: 72
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.179 | 0.533 | 35.3% | $2.3M | 55% | 24mo |
| Payer Mix Optimization | 0.650 | 0.691 | 4.0% | $606K | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.439 | 0.488 | 4.9% | $140K | 65% | 18mo |
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 | 30.7 | [25.0, 75.0] | P63 | 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. |