ML Analysis — LOGAN HEALTH CHESTER
CCN 271334 | 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.
49
/ 100 (C)
Financial Health4/25
RCM Upside20/25
Market Position15/20
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
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-16.0%
R²=0.34 | n=4,907 | Grade B | Actual: -34.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-44.3%, 12.3%]. P26 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 249388.080 | -0.1856 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 335316.240 | +0.1628 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.458 | -0.0738 | Higher Reimbursement Quality decreases predicted m | |
| Net-to-Gross | 0.965 | +0.0669 | Higher Net-to-Gross increases predicted margin | |
| Medicaid % | 0.511 | -0.0511 | Higher Medicaid % decreases predicted margin |
Turnaround: 24%Low turnaround probability (24%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Safety-Net/Medicaid Heavy
Archetype
60.7%
Distress Risk
$0
RCM Opportunity
D
Opportunity Grade
-34.5%
Projected Margin
Cluster: Safety-Net/Medicaid Heavy
Percentile within cluster: P51. High Medicaid dependence creates reimbursement risk. Assess DSH payments and state expansion status.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| WESTERN PEAKS SPECIALTY HOSPITAL | UT | 59 |
| HOSPITAL MENONITA AIBONITO | PR | 129 |
| TOPPENISH COMMUNITY HOSPITAL | WA | 47 |
| MINERAL COMMUNITY HOSPITAL | MT | 25 |
| BANNER UNIVERSITY MED CENTER SOUTH | AZ | 132 |
| NORTH COLORADO MEDICAL CENTER | CO | 202 |
Distress Analysis
Risk: High
National distress rate: 49.3%
MT distress rate: 69.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.511 | +0.422 | ▲ risk |
| Net To Gross Ratio | 0.965 | +0.266 | ▲ risk |
| Occupancy Rate | 0.779 | -0.236 | ▼ risk |
| Revenue Per Bed | 249388.080 | +0.079 | ▲ risk |
| Medicare Day Pct | 0.014 | -0.054 | ▼ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $0
Current margin: -34.5%
Projected margin: -34.5%
Grade: D
Comps: 48
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|
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 | 26.7 | [25.0, 75.0] | P38 | 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. |