ML Analysis — FIRST CARE HEALTH CENTER
CCN 351326 | 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.
48
/ 100 (C)
Financial Health7/25
RCM Upside18/25
Market Position12/20
Demand Defensibility6/15
Operational Efficiency6/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-4.7%
R²=0.34 | n=4,907 | Grade B | Actual: -2.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-33.0%, 23.6%]. P50 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Net-to-Gross | 0.773 | +0.0454 | Higher Net-to-Gross increases predicted margin | |
| Expense/Bed | 1306694.214 | +0.0432 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1278352.214 | -0.0420 | Lower Revenue/Bed decreases predicted margin | |
| Log(Beds) | 2.639 | -0.0403 | Lower Log(Beds) decreases predicted margin | |
| State Peer Margin | -0.093 | -0.0351 | Lower State Peer Margin decreases predicted margin |
Turnaround: 42%Turnaround possible (42%) but uncertain. Margin improvement depends on Net-to-Gross.
Rural/Critical Access
Archetype
51.5%
Distress Risk
$3.6M
RCM Opportunity
A
Opportunity Grade
17.9%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P77. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| DAYTON GENERAL HOSPITAL | WA | 25 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
Distress Analysis
Risk: High
National distress rate: 49.3%
ND distress rate: 69.4%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 0.774 | +0.180 | ▲ risk |
| Occupancy Rate | 0.647 | -0.113 | ▼ risk |
| Medicare Day Pct | 0.683 | +0.061 | ▲ risk |
| Medicaid Day Pct | 0.048 | -0.041 | ▼ risk |
| Beds | 14.000 | -0.018 | ▼ risk |
| Revenue Per Bed | 1278352.214 | +0.018 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.6M
Current margin: -2.2%
Projected margin: 17.9%
Grade: A
Comps: 36
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 | 0.269 | 0.492 | 22.3% | $3.3M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.774 | 0.895 | 12.1% | $253K | 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 | 27.9 | [25.0, 75.0] | P43 | 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. |