ML Analysis — PERKINS COUNTY HEALTH SERVICES
CCN 281356 | 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.
41
/ 100 (D)
Financial Health2/25
RCM Upside19/25
Market Position11/20
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)
-10.1%
R²=0.34 | n=4,907 | Grade B | Actual: -13.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-38.4%, 18.2%]. P37 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 1262547.150 | -0.0442 | Lower Revenue/Bed decreases predicted margin | |
| Net-to-Gross | 0.676 | +0.0344 | Higher Net-to-Gross increases predicted margin | |
| Log(Beds) | 2.996 | -0.0320 | Lower Log(Beds) decreases predicted margin | |
| Expense/Bed | 1426229.800 | +0.0285 | Higher Expense/Bed increases predicted margin | |
| Bed Utilization Value | 235733.119 | -0.0211 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 33%Turnaround possible (33%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Rural/Critical Access
Archetype
60.7%
Distress Risk
$3.1M
RCM Opportunity
B
Opportunity Grade
-0.7%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P20. 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 | 0.187 | +0.314 | ▲ risk |
| Net To Gross Ratio | 0.676 | +0.137 | ▲ risk |
| Medicare Day Pct | 0.752 | +0.073 | ▲ risk |
| Medicaid Day Pct | 0.026 | -0.062 | ▼ risk |
| Revenue Per Bed | 1262547.150 | +0.019 | ▲ risk |
| Beds | 20.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.1M
Current margin: -13.0%
Projected margin: -0.7%
Grade: B
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 | 0.222 | 0.381 | 16.0% | $2.4M | 50% | 24mo |
| Occupancy Improvement | 0.187 | 0.249 | 6.2% | $410K | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.676 | 0.779 | 10.3% | $304K | 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 | 31.6 | [25.0, 75.0] | P68 | 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. |