ML Analysis — BELLEVUE HOSPITAL CENTER
CCN 330204 | 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.
57
/ 100 (C)
Financial Health9/25
RCM Upside20/25
Market Position9/20
Demand Defensibility11/15
Operational Efficiency8/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
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)
-15.9%
R²=0.34 | n=4,907 | Grade B | Actual: -17.6%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-44.2%, 12.4%]. P26 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 2920062.046 | -0.1556 | Higher Expense/Bed decreases predicted margin | |
| Revenue/Bed | 2483336.127 | +0.1262 | Higher Revenue/Bed increases predicted margin | |
| State Peer Margin | -0.175 | -0.0960 | Lower State Peer Margin decreases predicted margin | |
| Bed Count | 527.000 | -0.0590 | Higher Bed Count decreases predicted margin | |
| Log(Beds) | 6.267 | +0.0440 | Higher Log(Beds) increases predicted margin |
Turnaround: 24%Low turnaround probability (24%). Structural disadvantages in Expense/Bed and Revenue/Bed.
Large Academic Medical Ce
Archetype
45.1%
Distress Risk
$2.2M
RCM Opportunity
D
Opportunity Grade
-17.4%
Projected Margin
Cluster: Large Academic Medical Center
Percentile within cluster: P70. 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 | 0.884 | -0.333 | ▼ risk |
| Medicaid Day Pct | 0.276 | +0.186 | ▲ risk |
| Revenue Per Bed | 2483336.127 | -0.053 | ▼ risk |
| Beds | 527.000 | +0.051 | ▲ risk |
| Medicare Day Pct | 0.096 | -0.040 | ▼ risk |
| Net To Gross Ratio | 0.416 | +0.021 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.2M
Current margin: -17.6%
Projected margin: -17.4%
Grade: D
Comps: 52
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 | 0.629 | 0.747 | 11.8% | $1.8M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.416 | 0.418 | 0.3% | $392K | 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. |