Investability Score
Hold / Selective — investigate specific opportunities but be prepared for execution risk.
58
/ 100 (C)
Financial Health11/25
RCM Upside15/25
Market Position15/20
Demand Defensibility10/15
Operational Efficiency7/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-4.1%
R²=0.34 | n=4,907 | Grade B | Actual: 0.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-32.4%, 24.2%]. P51 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1138194.060 | +0.0639 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1141790.627 | -0.0611 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.020 | +0.0188 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 563527.098 | -0.0103 | Lower Bed Utilization Value decreases predicted ma | |
| Bed Count | 83.000 | +0.0103 | Higher Bed Count increases predicted margin |
Suburban Community Hospit
Archetype
52.3%
Distress Risk
$6.0M
RCM Opportunity
C
Opportunity Grade
6.7%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P16. 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: High
National distress rate: 49.3%
NC distress rate: 36.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.130 | +0.041 | ▲ risk |
| Occupancy Rate | 0.494 | +0.029 | ▲ risk |
| Revenue Per Bed | 1141790.627 | +0.026 | ▲ risk |
| Net To Gross Ratio | 0.405 | +0.016 | ▲ risk |
| Medicare Day Pct | 0.416 | +0.015 | ▲ risk |
| Beds | 83.000 | -0.009 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.0M
Current margin: 0.3%
Projected margin: 6.7%
Grade: C
Comps: 54
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 | 0.454 | 0.759 | 30.5% | $4.6M | 50% | 24mo |
| Occupancy Improvement | 0.494 | 0.714 | 22.0% | $1.5M | 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 | 26.1 | [25.0, 75.0] | P35 | 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. |