ML Analysis — MONTEFIORE NEW ROCHELLE HOSPITAL
CCN 330184 | 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 Health7/25
RCM Upside20/25
Market Position9/20
Demand Defensibility12/15
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)
-20.3%
R²=0.34 | n=4,907 | Grade B | Actual: -41.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-48.6%, 8.0%]. P20 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | -0.175 | -0.0960 | Lower State Peer Margin decreases predicted margin | |
| Revenue/Bed | 1132141.404 | -0.0624 | Lower Revenue/Bed decreases predicted margin | |
| Log(Beds) | 4.949 | +0.0133 | Higher Log(Beds) increases predicted margin | |
| Bed Utilization Value | 636344.203 | -0.0079 | Lower Bed Utilization Value decreases predicted ma | |
| Reimbursement Quality | 0.175 | +0.0075 | Higher Reimbursement Quality increases predicted m |
Turnaround: 19%Low turnaround probability (19%). Structural disadvantages in State Peer Margin and Revenue/Bed.
Under-Performing / Distre
Archetype
48.1%
Distress Risk
$6.2M
RCM Opportunity
D
Opportunity Grade
-38.0%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P28. 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: Elevated
National distress rate: 49.3%
NY distress rate: 84.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.562 | -0.034 | ▼ risk |
| Revenue Per Bed | 1132141.404 | +0.026 | ▲ risk |
| Net To Gross Ratio | 0.311 | -0.026 | ▼ risk |
| Medicaid Day Pct | 0.066 | -0.023 | ▼ risk |
| Medicare Day Pct | 0.370 | +0.007 | ▲ risk |
| Beds | 141.000 | -0.001 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.2M
Current margin: -41.9%
Projected margin: -38.0%
Grade: D
Comps: 90
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Payer Mix Optimization | 0.564 | 0.744 | 18.0% | $2.7M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.311 | 0.414 | 10.3% | $1.9M | 65% | 18mo |
| Occupancy Improvement | 0.562 | 0.803 | 24.1% | $1.6M | 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 | 29.0 | [25.0, 75.0] | P51 | 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. |