ML Analysis — M HEALTH FAIRVIEW BETHESDA HOSPITAL
CCN 242004 | 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.
46
/ 100 (C)
Financial Health3/25
RCM Upside20/25
Market Position13/20
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
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-8.5%
R²=0.34 | n=4,907 | Grade B | Actual: -9.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-36.8%, 19.8%]. P41 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 454148.667 | -0.1571 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 498380.625 | +0.1428 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.424 | -0.0640 | Higher Reimbursement Quality decreases predicted m | |
| Log(Beds) | 3.178 | -0.0278 | Lower Log(Beds) decreases predicted margin | |
| Occupancy × Net-to-Gross | 0.490 | +0.0226 | Higher Occupancy × Net-to-Gross increases predicte |
Turnaround: 35%Turnaround possible (35%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Suburban Community Hospit
Archetype
44.0%
Distress Risk
$79K
RCM Opportunity
D
Opportunity Grade
-9.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P71. 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%
MN distress rate: 45.4%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.864 | -0.314 | ▼ risk |
| Net To Gross Ratio | 0.567 | +0.089 | ▲ risk |
| Revenue Per Bed | 454148.667 | +0.066 | ▲ risk |
| Medicare Day Pct | 0.176 | -0.026 | ▼ risk |
| Beds | 24.000 | -0.017 | ▼ risk |
| Medicaid Day Pct | 0.078 | -0.011 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $79K
Current margin: -9.7%
Projected margin: -9.0%
Grade: D
Comps: 93
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 | 0.567 | 0.629 | 6.2% | $79K | 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 | 25.8 | [25.0, 75.0] | P33 | 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. |