ML Analysis — ALICE HYDE MEDICAL CENTER
CCN 330084 | 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.
50
/ 100 (C)
Financial Health5/25
RCM Upside19/25
Market Position15/20
Demand Defensibility7/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-23.4%
R²=0.34 | n=4,907 | Grade B | Actual: -29.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-51.7%, 4.9%]. P17 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 2578657.425 | -0.1135 | Higher Expense/Bed decreases predicted margin | |
| State Peer Margin | -0.175 | -0.0960 | Lower State Peer Margin decreases predicted margin | |
| Revenue/Bed | 1992036.050 | +0.0576 | Higher Revenue/Bed increases predicted margin | |
| Bed Count | 40.000 | +0.0170 | Higher Bed Count increases predicted margin | |
| Log(Beds) | 3.689 | -0.0159 | Lower Log(Beds) decreases predicted margin |
Turnaround: 16%Low turnaround probability (16%). Structural disadvantages in Expense/Bed and State Peer Margin.
Under-Performing / Distre
Archetype
51.5%
Distress Risk
$4.8M
RCM Opportunity
C
Opportunity Grade
-23.4%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P24. 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%
NY distress rate: 84.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.294 | +0.215 | ▲ risk |
| Medicaid Day Pct | 0.009 | -0.079 | ▼ risk |
| Revenue Per Bed | 1992036.050 | -0.024 | ▼ risk |
| Net To Gross Ratio | 0.327 | -0.019 | ▼ risk |
| Beds | 40.000 | -0.015 | ▼ risk |
| Medicare Day Pct | 0.390 | +0.011 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.8M
Current margin: -29.4%
Projected margin: -23.4%
Grade: C
Comps: 39
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.294 | 0.644 | 35.0% | $2.3M | 55% | 24mo |
| Payer Mix Optimization | 0.601 | 0.690 | 8.9% | $1.3M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.327 | 0.455 | 12.8% | $1.2M | 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 | 32.8 | [25.0, 75.0] | P73 | 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. |