ML Analysis — THE REHABILITATION INSTITUTE OF ST.
CCN 263028 | 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.
57
/ 100 (C)
Financial Health7/25
RCM Upside18/25
Market Position15/20
Demand Defensibility13/15
Operational Efficiency4/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Negative operating margin
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-8.2%
R²=0.34 | n=4,907 | Grade B | Actual: -3.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-36.5%, 20.1%]. P42 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 380851.691 | -0.1673 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 392888.537 | +0.1557 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.342 | -0.0405 | Higher Reimbursement Quality decreases predicted m | |
| Net-to-Gross | 0.645 | +0.0310 | Higher Net-to-Gross increases predicted margin | |
| Occupancy × Net-to-Gross | 0.457 | +0.0202 | Higher Occupancy × Net-to-Gross increases predicte |
Turnaround: 36%Turnaround possible (36%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Suburban Community Hospit
Archetype
51.5%
Distress Risk
$2.3M
RCM Opportunity
D
Opportunity Grade
1.2%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P53. 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: High
National distress rate: 49.3%
MO distress rate: 53.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.708 | -0.170 | ▼ risk |
| Net To Gross Ratio | 0.645 | +0.123 | ▲ risk |
| Revenue Per Bed | 380851.691 | +0.071 | ▲ risk |
| Medicaid Day Pct | 0.158 | +0.069 | ▲ risk |
| Medicare Day Pct | 0.311 | -0.003 | ▼ risk |
| Beds | 136.000 | -0.002 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.3M
Current margin: -3.2%
Projected margin: 1.2%
Grade: D
Comps: 41
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 | 0.531 | 0.664 | 13.3% | $2.0M | 50% | 24mo |
| Occupancy Improvement | 0.708 | 0.750 | 4.1% | $273K | 55% | 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 | 25.0 | [25.0, 75.0] | P0 | 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. |