ML Analysis — SSH - SPECTRUM HEALTH
CCN 232029 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
43
/ 100 (D)
Financial Health8/25
RCM Upside15/25
Market Position11/20
Demand Defensibility8/15
Operational Efficiency1/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-6.2%
R²=0.34 | n=4,907 | Grade B | Actual: 0.6%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-34.5%, 22.1%]. P46 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 600529.028 | -0.1366 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 596801.583 | +0.1306 | Higher Expense/Bed increases predicted margin | |
| Net-to-Gross | 0.194 | -0.0195 | Lower Net-to-Gross decreases predicted margin | |
| Log(Beds) | 3.583 | -0.0184 | Lower Log(Beds) decreases predicted margin | |
| Bed Count | 36.000 | +0.0176 | Higher Bed Count increases predicted margin |
Suburban Community Hospit
Archetype
40.3%
Distress Risk
$712K
RCM Opportunity
D
Opportunity Grade
3.9%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P58. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| CLARA MAASS MEDICAL CENTER | NJ | 259 |
| PRESENCE SAINTS MARY & ELIZABETH MED | IL | 266 |
| ADVENTIST HEALTH BAKERSFIELD | CA | 254 |
| BRISTOL REGIONAL MEDICAL CENTER | TN | 244 |
| HOLSTON VALLEY HOSP & MED CTR | TN | 286 |
| SPRINGFIELD REGIONAL MEDICAL CENTER | OH | 230 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
MI distress rate: 50.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.808 | -0.263 | ▼ risk |
| Net To Gross Ratio | 0.194 | -0.078 | ▼ risk |
| Revenue Per Bed | 600529.028 | +0.058 | ▲ risk |
| Medicaid Day Pct | 0.038 | -0.051 | ▼ risk |
| Medicare Day Pct | 0.234 | -0.016 | ▼ risk |
| Beds | 36.000 | -0.015 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $712K
Current margin: 0.6%
Projected margin: 3.9%
Grade: D
Comps: 74
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 | 0.194 | 0.476 | 28.1% | $712K | 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 | 28.3 | [25.0, 75.0] | P45 | 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. |