ML Analysis — LONG PRAIRIE MEMORIAL HOSPITAL
CCN 241326 | 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.
56
/ 100 (C)
Financial Health6/25
RCM Upside18/25
Market Position15/20
Demand Defensibility9/15
Operational Efficiency8/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-2.8%
R²=0.34 | n=4,907 | Grade B | Actual: -3.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-31.1%, 25.5%]. P55 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2811137.929 | +0.1720 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2904301.857 | -0.1536 | Higher Expense/Bed decreases predicted margin | |
| Log(Beds) | 2.639 | -0.0403 | Lower Log(Beds) decreases predicted margin | |
| Reimbursement Quality | 0.332 | -0.0374 | Higher Reimbursement Quality decreases predicted m | |
| Net-to-Gross | 0.605 | +0.0265 | Higher Net-to-Gross increases predicted margin |
Turnaround: 45%Turnaround possible (45%) but uncertain. Margin improvement depends on Revenue/Bed.
Suburban Community Hospit
Archetype
48.5%
Distress Risk
$898K
RCM Opportunity
D
Opportunity Grade
-1.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P12. 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: Elevated
National distress rate: 49.3%
MN distress rate: 45.4%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 0.605 | +0.105 | ▲ risk |
| Revenue Per Bed | 2811137.929 | -0.073 | ▼ risk |
| Medicaid Day Pct | 0.045 | -0.044 | ▼ risk |
| Occupancy Rate | 0.545 | -0.019 | ▼ risk |
| Beds | 14.000 | -0.018 | ▼ risk |
| Medicare Day Pct | 0.407 | +0.014 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $898K
Current margin: -3.3%
Projected margin: -1.0%
Grade: D
Comps: 85
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 | 0.548 | 0.596 | 4.8% | $725K | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.605 | 0.642 | 3.8% | $173K | 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 | 28.5 | [25.0, 75.0] | P47 | 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. |