ML Analysis — BHC MESILLA VALLEY HOSPITAL LLC
CCN 324010 | 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.
51
/ 100 (C)
Financial Health15/25
RCM Upside5/25
Market Position15/20
Demand Defensibility9/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-6.2%
R²=0.34 | n=4,907 | Grade B | Actual: 16.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-34.4%, 22.1%]. P46 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 209790.917 | -0.1912 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 174489.100 | +0.1827 | Higher Expense/Bed increases predicted margin | |
| Bed Utilization Value | 141331.063 | -0.0243 | Lower Bed Utilization Value decreases predicted ma | |
| Reimbursement Quality | 0.257 | -0.0159 | Higher Reimbursement Quality decreases predicted m | |
| Commercial % | 0.944 | +0.0146 | Higher Commercial % increases predicted margin |
Suburban Community Hospit
Archetype
43.8%
Distress Risk
$362K
RCM Opportunity
D
Opportunity Grade
18.3%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P84. 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%
NM distress rate: 41.7%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.674 | -0.138 | ▼ risk |
| Revenue Per Bed | 209790.917 | +0.081 | ▲ risk |
| Medicaid Day Pct | 0.021 | -0.068 | ▼ risk |
| Medicare Day Pct | 0.036 | -0.050 | ▼ risk |
| Net To Gross Ratio | 0.272 | -0.043 | ▼ risk |
| Beds | 120.000 | -0.004 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $362K
Current margin: 16.8%
Projected margin: 18.3%
Grade: D
Comps: 16
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 | 0.272 | 0.395 | 12.3% | $362K | 65% | 18mo |
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. |