ML Analysis — VALLEY REGIONAL HOSPITAL
CCN 301308 | 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.
56
/ 100 (C)
Financial Health11/25
RCM Upside15/25
Market Position15/20
Demand Defensibility6/15
Operational Efficiency9/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-1.7%
R²=0.34 | n=4,907 | Grade B | Actual: 0.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-30.0%, 26.6%]. P58 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2172081.400 | +0.0827 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2166621.080 | -0.0628 | Higher Expense/Bed decreases predicted margin | |
| Net-to-Gross | 0.637 | +0.0301 | Higher Net-to-Gross increases predicted margin | |
| Reimbursement Quality | 0.296 | -0.0272 | Higher Reimbursement Quality decreases predicted m | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin |
Rural/Critical Access
Archetype
51.3%
Distress Risk
$3.3M
RCM Opportunity
C
Opportunity Grade
6.3%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P51. 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%
NH distress rate: 42.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 0.637 | +0.120 | ▲ risk |
| Medicaid Day Pct | 0.001 | -0.088 | ▼ risk |
| Occupancy Rate | 0.458 | +0.062 | ▲ risk |
| Medicare Day Pct | 0.534 | +0.036 | ▲ risk |
| Revenue Per Bed | 2172081.400 | -0.035 | ▼ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.3M
Current margin: 0.2%
Projected margin: 6.3%
Grade: C
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 | 0.465 | 0.628 | 16.3% | $2.4M | 50% | 24mo |
| Occupancy Improvement | 0.458 | 0.583 | 12.5% | $827K | 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 | 27.3 | [25.0, 75.0] | P40 | 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. |