ML Analysis — PAM REHAB HOSP OF CENTENNIAL HILLS
CCN 293034 | 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.
46
/ 100 (C)
Financial Health16/25
RCM Upside5/25
Market Position10/20
Demand Defensibility6/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
11.2%
R²=0.34 | n=4,907 | Grade B | Actual: 29.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-17.1%, 39.6%]. P84 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 576120.182 | +0.1332 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 812296.432 | -0.1071 | Lower Revenue/Bed decreases predicted margin | |
| Reimbursement Quality | 0.066 | +0.0390 | Higher Reimbursement Quality increases predicted m | |
| State Peer Margin | 0.004 | +0.0369 | Higher State Peer Margin increases predicted margi | |
| Occupancy × Net-to-Gross | 0.551 | +0.0272 | Higher Occupancy × Net-to-Gross increases predicte |
Rural/Critical Access
Archetype
43.1%
Distress Risk
$7.7M
RCM Opportunity
A
Opportunity Grade
50.6%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P100. 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: Elevated
National distress rate: 49.3%
NV distress rate: 37.5%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.945 | -0.390 | ▼ risk |
| Net To Gross Ratio | 0.583 | +0.096 | ▲ risk |
| Medicare Day Pct | 0.883 | +0.095 | ▲ risk |
| Medicaid Day Pct | 0.004 | -0.084 | ▼ risk |
| Revenue Per Bed | 812296.432 | +0.045 | ▲ risk |
| Beds | 44.000 | -0.014 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.7M
Current margin: 29.1%
Projected margin: 50.6%
Grade: A
Comps: 19
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 | 0.113 | 0.626 | 51.3% | $7.7M | 50% | 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 | 25.0 | [25.0, 75.0] | P0 | 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. |