ML Analysis — OZARKS MEDICAL CENTER
CCN 260078 | 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.
54
/ 100 (C)
Financial Health7/25
RCM Upside19/25
Market Position15/20
Demand Defensibility9/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-15.2%
R²=0.34 | n=4,907 | Grade B | Actual: -49.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-43.5%, 13.1%]. P27 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1969216.460 | -0.0384 | Higher Expense/Bed decreases predicted margin | |
| Revenue/Bed | 1313298.604 | -0.0371 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.062 | -0.0125 | Lower State Peer Margin decreases predicted margin | |
| Net-to-Gross | 0.260 | -0.0121 | Lower Net-to-Gross decreases predicted margin | |
| Reimbursement Quality | 0.160 | +0.0118 | Higher Reimbursement Quality increases predicted m |
Turnaround: 25%Low turnaround probability (25%). Structural disadvantages in Expense/Bed and Revenue/Bed.
Under-Performing / Distre
Archetype
49.5%
Distress Risk
$6.0M
RCM Opportunity
D
Opportunity Grade
-45.8%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P32. Deeply negative margins signal severe distress. Evaluate asset-level acquisition at 4-6x normalized EBITDA.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| HOLY FAMILY MEMORIAL INC | WI | 58 |
| MIDDLESBORO ARH | KY | 46 |
| ATRIUM HEALTH NAVICENT BALDWIN | GA | 86 |
| BON SECOURS COMMUNITY HOSPITAL | NY | 98 |
| ADVANCED SPECIALTY HOSP. OF TOLEDO | OH | 40 |
| COMMUNITY HEALTH CENTER BRANCH | MI | 75 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
MO distress rate: 53.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 0.260 | -0.048 | ▼ risk |
| Occupancy Rate | 0.494 | +0.029 | ▲ risk |
| Medicaid Day Pct | 0.115 | +0.026 | ▲ risk |
| Revenue Per Bed | 1313298.604 | +0.016 | ▲ risk |
| Medicare Day Pct | 0.269 | -0.010 | ▼ risk |
| Beds | 111.000 | -0.005 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.0M
Current margin: -49.9%
Projected margin: -45.8%
Grade: D
Comps: 38
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 | 0.260 | 0.441 | 18.1% | $3.1M | 65% | 18mo |
| Occupancy Improvement | 0.494 | 0.778 | 28.4% | $1.9M | 55% | 24mo |
| Payer Mix Optimization | 0.616 | 0.687 | 7.0% | $1.1M | 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 | 29.9 | [25.0, 75.0] | P58 | 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. |