ML Analysis — JEFFERSON COMMUNITY HEALTH CENTER
CCN 281319 | 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.
40
/ 100 (D)
Financial Health2/25
RCM Upside18/25
Market Position13/20
Demand Defensibility2/15
Operational Efficiency6/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-10.8%
R²=0.34 | n=4,907 | Grade B | Actual: -5.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-39.1%, 17.5%]. P35 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Net-to-Gross | 0.710 | +0.0382 | Higher Net-to-Gross increases predicted margin | |
| Log(Beds) | 2.833 | -0.0358 | Lower Log(Beds) decreases predicted margin | |
| Occupancy | 0.137 | -0.0221 | Lower Occupancy decreases predicted margin | |
| Bed Utilization Value | 228926.860 | -0.0214 | Lower Bed Utilization Value decreases predicted ma | |
| Bed Count | 17.000 | +0.0206 | Higher Bed Count increases predicted margin |
Turnaround: 32%Turnaround possible (32%) but uncertain. Margin improvement depends on Net-to-Gross.
Rural/Critical Access
Archetype
61.3%
Distress Risk
$2.0M
RCM Opportunity
C
Opportunity Grade
1.9%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P13. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| DAYTON GENERAL HOSPITAL | WA | 25 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
Distress Analysis
Risk: High
National distress rate: 49.3%
NE distress rate: 53.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.137 | +0.360 | ▲ risk |
| Net To Gross Ratio | 0.710 | +0.152 | ▲ risk |
| Medicaid Day Pct | 0.031 | -0.058 | ▼ risk |
| Medicare Day Pct | 0.658 | +0.057 | ▲ risk |
| Beds | 17.000 | -0.018 | ▼ risk |
| Revenue Per Bed | 1673134.471 | -0.006 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.0M
Current margin: -5.2%
Projected margin: 1.9%
Grade: C
Comps: 69
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 | 0.311 | 0.381 | 7.0% | $1.1M | 50% | 24mo |
| Occupancy Improvement | 0.137 | 0.249 | 11.2% | $740K | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.710 | 0.779 | 6.9% | $230K | 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 | 30.7 | [25.0, 75.0] | P63 | 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. |