ML Analysis — ST. ALEXIUS HOSPITAL
CCN 260210 | 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.
38
/ 100 (D)
Financial Health4/25
RCM Upside18/25
Market Position8/20
Demand Defensibility7/15
Operational Efficiency0/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-16.4%
R²=0.34 | n=4,907 | Grade B | Actual: -38.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-44.7%, 11.9%]. P26 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 309078.442 | -0.1773 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 429259.809 | +0.1513 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.093 | +0.0311 | Higher Reimbursement Quality increases predicted m | |
| Medicaid % | 0.320 | -0.0279 | Higher Medicaid % decreases predicted margin | |
| Bed Utilization Value | 59240.755 | -0.0270 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 24%Low turnaround probability (24%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Under-Performing / Distre
Archetype
62.4%
Distress Risk
$7.9M
RCM Opportunity
A
Opportunity Grade
-21.4%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P93. 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: High
National distress rate: 49.3%
MO distress rate: 53.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.192 | +0.310 | ▲ risk |
| Medicaid Day Pct | 0.320 | +0.231 | ▲ risk |
| Revenue Per Bed | 309078.442 | +0.075 | ▲ risk |
| Net To Gross Ratio | 0.216 | -0.068 | ▼ risk |
| Medicare Day Pct | 0.249 | -0.013 | ▼ risk |
| Beds | 147.000 | -0.000 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.9M
Current margin: -38.9%
Projected margin: -21.4%
Grade: A
Comps: 39
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.192 | 0.746 | 55.4% | $3.7M | 55% | 24mo |
| Payer Mix Optimization | 0.431 | 0.659 | 22.8% | $3.4M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.216 | 0.380 | 16.4% | $872K | 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 | 31.2 | [25.0, 75.0] | P65 | 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. |