ML Analysis — CORNERSTONE BEHAVIORAL HEALTH HOSPIT
CCN 314027 | 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 Health4/25
RCM Upside18/25
Market Position11/20
Demand Defensibility6/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-14.3%
R²=0.34 | n=4,907 | Grade B | Actual: -3.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-42.6%, 14.0%]. P28 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Reimbursement Quality | 0.933 | -0.2105 | Higher Reimbursement Quality decreases predicted m | |
| Revenue/Bed | 414049.614 | -0.1627 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 429759.273 | +0.1512 | Higher Expense/Bed increases predicted margin | |
| Net-to-Gross | 1.000 | +0.0708 | Higher Net-to-Gross increases predicted margin | |
| Occupancy × Net-to-Gross | 0.756 | +0.0425 | Higher Occupancy × Net-to-Gross increases predicte |
Turnaround: 27%Low turnaround probability (27%). Structural disadvantages in Reimbursement Quality and Revenue/Bed.
Suburban Community Hospit
Archetype
49.2%
Distress Risk
$49K
RCM Opportunity
D
Opportunity Grade
-3.5%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P77. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| CLARA MAASS MEDICAL CENTER | NJ | 259 |
| PRESENCE SAINTS MARY & ELIZABETH MED | IL | 266 |
| ADVENTIST HEALTH BAKERSFIELD | CA | 254 |
| BRISTOL REGIONAL MEDICAL CENTER | TN | 244 |
| HOLSTON VALLEY HOSP & MED CTR | TN | 286 |
| SPRINGFIELD REGIONAL MEDICAL CENTER | OH | 230 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
NJ distress rate: 47.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 1.000 | +0.281 | ▲ risk |
| Occupancy Rate | 0.757 | -0.215 | ▼ risk |
| Medicaid Day Pct | 0.007 | -0.082 | ▼ risk |
| Revenue Per Bed | 414049.614 | +0.069 | ▲ risk |
| Medicare Day Pct | 0.060 | -0.046 | ▼ risk |
| Beds | 44.000 | -0.014 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $49K
Current margin: -3.8%
Projected margin: -3.5%
Grade: D
Comps: 20
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.757 | 0.764 | 0.7% | $49K | 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 | 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. |