ML Analysis — BORGESS-PIPP HEALTH CENTER
CCN 232034 | 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.
45
/ 100 (D)
Financial Health16/25
RCM Upside5/25
Market Position15/20
Demand Defensibility4/15
Operational Efficiency5/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- 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)
-11.0%
R²=0.34 | n=4,907 | Grade B | Actual: 31.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-39.3%, 17.3%]. P35 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 316026.395 | +0.1652 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 458654.977 | -0.1564 | Lower Revenue/Bed decreases predicted margin | |
| Bed Utilization Value | 89013.256 | -0.0260 | Lower Bed Utilization Value decreases predicted ma | |
| Occupancy | 0.194 | -0.0188 | Lower Occupancy decreases predicted margin | |
| Bed Count | 43.000 | +0.0165 | Higher Bed Count increases predicted margin |
Suburban Community Hospit
Archetype
56.3%
Distress Risk
$3.0M
RCM Opportunity
A
Opportunity Grade
46.4%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P89. 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 | 0.194 | +0.307 | ▲ risk |
| Revenue Per Bed | 458654.977 | +0.066 | ▲ risk |
| Net To Gross Ratio | 0.229 | -0.062 | ▼ risk |
| Medicare Day Pct | 0.224 | -0.018 | ▼ risk |
| Beds | 43.000 | -0.014 | ▼ risk |
| Medicaid Day Pct | 0.090 | +0.001 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.0M
Current margin: 31.1%
Projected margin: 46.4%
Grade: A
Comps: 74
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.194 | 0.554 | 36.0% | $2.4M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.229 | 0.466 | 23.7% | $547K | 65% | 18mo |
| Payer Mix Optimization | 0.686 | 0.692 | 0.6% | $90K | 50% | 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 | 28.2 | [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. |