ML Analysis — MEMORIAL MEDICAL CENTER
CCN 320018 | 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.
53
/ 100 (C)
Financial Health15/25
RCM Upside10/25
Market Position13/20
Demand Defensibility10/15
Operational Efficiency5/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-0.2%
R²=0.34 | n=4,907 | Grade B | Actual: 8.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-28.5%, 28.1%]. P62 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1480364.774 | +0.0218 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 5.293 | +0.0213 | Higher Log(Beds) increases predicted margin | |
| Net-to-Gross | 0.209 | -0.0179 | Lower Net-to-Gross decreases predicted margin | |
| State Peer Margin | -0.027 | +0.0136 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.157 | +0.0127 | Higher Reimbursement Quality increases predicted m |
Suburban Community Hospit
Archetype
45.4%
Distress Risk
$7.0M
RCM Opportunity
D
Opportunity Grade
10.9%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P31. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| PROMEDICA HICKMAN HOSPITAL | MI | 58 |
| WATAUGA MEDICAL CENTER | NC | 95 |
| ST LUKES HOSPITAL - EASTON CAMPUS | PA | 29 |
| CULPEPER MEMORIAL HOSPITAL | VA | 70 |
| SOUTHSIDE COMMUNITY HOSPITAL | VA | 80 |
| SPECTRUM HEALTH LUDINGTON | MI | 45 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
NM distress rate: 41.7%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.012 | -0.076 | ▼ risk |
| Net To Gross Ratio | 0.209 | -0.071 | ▼ risk |
| Medicare Day Pct | 0.236 | -0.016 | ▼ risk |
| Beds | 199.000 | +0.007 | ▲ risk |
| Revenue Per Bed | 1621571.246 | -0.002 | ▼ risk |
| Occupancy Rate | 0.526 | -0.001 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.0M
Current margin: 8.7%
Projected margin: 10.9%
Grade: D
Comps: 1938
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.209 | 0.352 | 14.2% | $5.4M | 65% | 18mo |
| Occupancy Improvement | 0.526 | 0.761 | 23.5% | $1.6M | 55% | 24mo |
| Payer Mix Optimization | 0.752 | 0.756 | 0.4% | $62K | 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. |