ML Analysis — ASPIRUS IRON RIVER HOPSITAL & CLINIC
CCN 231318 | 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 Health3/25
RCM Upside19/25
Market Position15/20
Demand Defensibility6/15
Operational Efficiency6/15
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
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-13.0%
R²=0.34 | n=4,907 | Grade B | Actual: -12.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-41.3%, 15.3%]. P31 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 1378398.400 | -0.0280 | Lower Revenue/Bed decreases predicted margin | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin | |
| Bed Utilization Value | 286404.753 | -0.0195 | Lower Bed Utilization Value decreases predicted ma | |
| Bed Count | 25.000 | +0.0193 | Higher Bed Count increases predicted margin | |
| Occupancy | 0.208 | -0.0180 | Lower Occupancy decreases predicted margin |
Turnaround: 29%Low turnaround probability (29%). Structural disadvantages in Revenue/Bed and Log(Beds).
Rural/Critical Access
Archetype
55.0%
Distress Risk
$4.1M
RCM Opportunity
B
Opportunity Grade
-0.4%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P67. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| DAYTON GENERAL HOSPITAL | WA | 25 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
Distress Analysis
Risk: High
National distress rate: 49.3%
MI distress rate: 50.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.208 | +0.295 | ▲ risk |
| Medicaid Day Pct | 0.022 | -0.067 | ▼ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
| Revenue Per Bed | 1378398.400 | +0.012 | ▲ risk |
| Medicare Day Pct | 0.381 | +0.009 | ▲ risk |
| Net To Gross Ratio | 0.353 | -0.007 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.1M
Current margin: -12.3%
Projected margin: -0.4%
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 | 0.208 | 0.533 | 32.5% | $2.1M | 55% | 24mo |
| Payer Mix Optimization | 0.597 | 0.691 | 9.4% | $1.4M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.353 | 0.488 | 13.5% | $543K | 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 | 32.1 | [25.0, 75.0] | P71 | 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. |