ML Analysis — MONTEFIORE MEDICAL CENTER
CCN 330059 | 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.
55
/ 100 (C)
Financial Health10/25
RCM Upside19/25
Market Position11/20
Demand Defensibility11/15
Operational Efficiency4/15
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
Margin Prediction (Trained Ridge Model)
-35.7%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-64.0%, -7.4%]. P10 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 3290141.844 | -0.2012 | Higher Expense/Bed decreases predicted margin | |
| Bed Count | 1410.000 | -0.1968 | Higher Bed Count decreases predicted margin | |
| State Peer Margin | -0.175 | -0.0960 | Lower State Peer Margin decreases predicted margin | |
| Revenue/Bed | 2137392.908 | +0.0779 | Higher Revenue/Bed increases predicted margin | |
| Log(Beds) | 7.251 | +0.0668 | Higher Log(Beds) increases predicted margin |
Turnaround: 7%Low turnaround probability (7%). Structural disadvantages in Expense/Bed and Bed Count.
Large Academic Medical Ce
Archetype
42.1%
Distress Risk
$45.5M
RCM Opportunity
D
Opportunity Grade
-48.5%
Projected Margin
Cluster: Large Academic Medical Center
Percentile within cluster: P91. Large medical centers trade at premium multiples (12-14x). Limited PE value creation but strong cash flow.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| NORTH CAROLINA BAPTIST HOSPITAL | NC | 800 |
| HACKENSACK UNIVERSITY MEDICAL CENTER | NJ | 779 |
| TEMPLE UNIVERSITY HOSPITAL | PA | 761 |
| VCU HEALTH SYSTEM MCV HOSPITAL | VA | 842 |
| UH CLEVELAND MEDICAL CENTER | OH | 660 |
| FROEDTERT MEM. LUTHERAN HOSPT. | WI | 731 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
NY distress rate: 84.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.871 | -0.321 | ▼ risk |
| Beds | 1410.000 | +0.169 | ▲ risk |
| Net To Gross Ratio | 0.180 | -0.084 | ▼ risk |
| Revenue Per Bed | 2137392.908 | -0.033 | ▼ risk |
| Medicare Day Pct | 0.180 | -0.025 | ▼ risk |
| Medicaid Day Pct | 0.092 | +0.003 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $45.5M
Current margin: -50.0%
Projected margin: -48.5%
Grade: D
Comps: 113
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 | 0.180 | 0.308 | 12.8% | $45.0M | 65% | 18mo |
| Payer Mix Optimization | 0.728 | 0.762 | 3.3% | $499K | 50% | 24mo |
| Occupancy Improvement | 0.871 | 0.879 | 0.8% | $53K | 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. |