ML Analysis — PERSHING GENERAL HOSPITAL
CCN 291304 | 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.
43
/ 100 (D)
Financial Health5/25
RCM Upside19/25
Market Position11/20
Demand Defensibility3/15
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)
-5.4%
R²=0.34 | n=4,907 | Grade B | Actual: -19.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-33.7%, 22.9%]. P48 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 1056323.461 | -0.0730 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1264670.000 | +0.0484 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 2.565 | -0.0420 | Lower Log(Beds) decreases predicted margin | |
| Net-to-Gross | 0.715 | +0.0389 | Higher Net-to-Gross increases predicted margin | |
| State Peer Margin | 0.004 | +0.0369 | Higher State Peer Margin increases predicted margi |
Turnaround: 41%Turnaround possible (41%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Rural/Critical Access
Archetype
60.4%
Distress Risk
$7.2M
RCM Opportunity
A
Opportunity Grade
32.6%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P42. 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%
NV distress rate: 37.5%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.234 | +0.271 | ▲ risk |
| Net To Gross Ratio | 0.715 | +0.154 | ▲ risk |
| Medicare Day Pct | 0.790 | +0.079 | ▲ risk |
| Medicaid Day Pct | 0.021 | -0.068 | ▼ risk |
| Revenue Per Bed | 1056323.462 | +0.031 | ▲ risk |
| Beds | 13.000 | -0.018 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.2M
Current margin: -19.7%
Projected margin: 32.6%
Grade: A
Comps: 13
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 | 0.189 | 0.563 | 37.4% | $5.6M | 50% | 24mo |
| Occupancy Improvement | 0.234 | 0.472 | 23.8% | $1.6M | 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 | 33.8 | [25.0, 75.0] | P77 | Average — predicted days in ar is near the median. |
| 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. |