ML Analysis — DIGINTY HEALTH ST ROSE DOMINICAN
CCN 290058 | 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 Health16/25
RCM Upside6/25
Market Position9/20
Demand Defensibility2/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-3.4%
R²=0.34 | n=4,907 | Grade B | Actual: 12.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-31.7%, 24.9%]. P54 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 1921149.344 | +0.0477 | Higher Revenue/Bed increases predicted margin | |
| Reimbursement Quality | 0.068 | +0.0383 | Higher Reimbursement Quality increases predicted m | |
| State Peer Margin | 0.004 | +0.0369 | Higher State Peer Margin increases predicted margi | |
| Net-to-Gross | 0.095 | -0.0307 | Lower Net-to-Gross decreases predicted margin | |
| Occupancy | 0.114 | -0.0233 | Lower Occupancy decreases predicted margin |
Suburban Community Hospit
Archetype
55.0%
Distress Risk
$6.6M
RCM Opportunity
B
Opportunity Grade
22.9%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P86. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| PROMEDICA HICKMAN HOSPITAL | MI | 58 |
| WATAUGA MEDICAL CENTER | NC | 95 |
| ST LUKES HOSPITAL - EASTON CAMPUS | PA | 29 |
| CULPEPER MEMORIAL HOSPITAL | VA | 70 |
| SOUTHSIDE COMMUNITY HOSPITAL | VA | 80 |
| SPECTRUM HEALTH LUDINGTON | MI | 45 |
Distress Analysis
Risk: High
National distress rate: 49.3%
NV distress rate: 37.5%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.114 | +0.381 | ▲ risk |
| Net To Gross Ratio | 0.095 | -0.122 | ▼ risk |
| Medicaid Day Pct | 0.120 | +0.031 | ▲ risk |
| Medicare Day Pct | 0.161 | -0.028 | ▼ risk |
| Revenue Per Bed | 1921149.344 | -0.020 | ▼ risk |
| Beds | 32.000 | -0.016 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.6M
Current margin: 12.2%
Projected margin: 22.9%
Grade: B
Comps: 16
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.114 | 0.670 | 55.5% | $3.7M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.095 | 0.506 | 41.0% | $3.0M | 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 | 32.6 | [25.0, 75.0] | P72 | 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. |