ML Analysis — GOUVERNEUR HOSPITAL
CCN 331315 | 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 Health1/25
RCM Upside20/25
Market Position13/20
Demand Defensibility10/15
Operational Efficiency6/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-17.2%
R²=0.34 | n=4,907 | Grade B | Actual: -10.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-45.5%, 11.1%]. P24 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | -0.175 | -0.0960 | Lower State Peer Margin decreases predicted margin | |
| Revenue/Bed | 1046470.720 | -0.0744 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1156367.200 | +0.0617 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.295 | -0.0270 | Higher Reimbursement Quality decreases predicted m | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin |
Turnaround: 23%Low turnaround probability (23%). Structural disadvantages in State Peer Margin and Revenue/Bed.
Suburban Community Hospit
Archetype
45.3%
Distress Risk
$335K
RCM Opportunity
D
Opportunity Grade
-9.2%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P49. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| PROMEDICA HICKMAN HOSPITAL | MI | 58 |
| WATAUGA MEDICAL CENTER | NC | 95 |
| ST LUKES HOSPITAL - EASTON CAMPUS | PA | 29 |
| CULPEPER MEMORIAL HOSPITAL | VA | 70 |
| SOUTHSIDE COMMUNITY HOSPITAL | VA | 80 |
| SPECTRUM HEALTH LUDINGTON | MI | 45 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
NY distress rate: 84.9%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.673 | -0.138 | ▼ risk |
| Medicaid Day Pct | 0.014 | -0.075 | ▼ risk |
| Net To Gross Ratio | 0.447 | +0.035 | ▲ risk |
| Revenue Per Bed | 1046470.720 | +0.031 | ▲ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
| Medicare Day Pct | 0.325 | -0.000 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $335K
Current margin: -10.5%
Projected margin: -9.2%
Grade: D
Comps: 30
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 | 0.662 | 0.679 | 1.7% | $261K | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.447 | 0.471 | 2.4% | $73K | 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 | 29.5 | [25.0, 75.0] | P55 | 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. |