ML Analysis — EAST ORANGE GENERAL HOSPITAL
CCN 310083 | 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.
42
/ 100 (D)
Financial Health4/25
RCM Upside19/25
Market Position11/20
Demand Defensibility8/15
Operational Efficiency0/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-11.9%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-40.2%, 16.4%]. P33 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 485776.095 | -0.1526 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 745357.121 | +0.1123 | Higher Expense/Bed increases predicted margin | |
| Bed Utilization Value | 153473.543 | -0.0239 | Lower Bed Utilization Value decreases predicted ma | |
| Reimbursement Quality | 0.126 | +0.0217 | Higher Reimbursement Quality increases predicted m | |
| Net-to-Gross | 0.179 | -0.0213 | Lower Net-to-Gross decreases predicted margin |
Turnaround: 30%Turnaround possible (30%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Under-Performing / Distre
Archetype
52.5%
Distress Risk
$3.7M
RCM Opportunity
D
Opportunity Grade
-45.2%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P30. Deeply negative margins signal severe distress. Evaluate asset-level acquisition at 4-6x normalized EBITDA.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| HOLY FAMILY MEMORIAL INC | WI | 58 |
| MIDDLESBORO ARH | KY | 46 |
| ATRIUM HEALTH NAVICENT BALDWIN | GA | 86 |
| BON SECOURS COMMUNITY HOSPITAL | NY | 98 |
| ADVANCED SPECIALTY HOSP. OF TOLEDO | OH | 40 |
| COMMUNITY HEALTH CENTER BRANCH | MI | 75 |
Distress Analysis
Risk: High
National distress rate: 49.3%
NJ distress rate: 47.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.316 | +0.194 | ▲ risk |
| Net To Gross Ratio | 0.179 | -0.085 | ▼ risk |
| Revenue Per Bed | 485776.096 | +0.065 | ▲ risk |
| Medicaid Day Pct | 0.058 | -0.031 | ▼ risk |
| Medicare Day Pct | 0.238 | -0.015 | ▼ risk |
| Beds | 157.000 | +0.001 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.7M
Current margin: -50.0%
Projected margin: -45.2%
Grade: D
Comps: 52
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.316 | 0.740 | 42.4% | $2.8M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.179 | 0.250 | 7.1% | $636K | 65% | 18mo |
| Payer Mix Optimization | 0.705 | 0.720 | 1.5% | $230K | 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 | 31.7 | [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. |