ML Analysis — MCCULLOUGH-HYDE MEMORIAL HOSPITAL
CCN 360046 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
45
/ 100 (D)
Financial Health8/25
RCM Upside14/25
Market Position13/20
Demand Defensibility7/15
Operational Efficiency3/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Low occupancy (<30%) — demand risk
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-7.2%
R²=0.34 | n=4,907 | Grade B | Actual: 1.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-35.5%, 21.1%]. P44 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 917206.269 | +0.0912 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 930155.231 | -0.0906 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.004 | +0.0313 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 263707.339 | -0.0202 | Lower Bed Utilization Value decreases predicted ma | |
| Bed Count | 52.000 | +0.0151 | Higher Bed Count increases predicted margin |
Suburban Community Hospit
Archetype
54.8%
Distress Risk
$4.6M
RCM Opportunity
C
Opportunity Grade
10.9%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P46. 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%
OH distress rate: 37.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.284 | +0.224 | ▲ risk |
| Revenue Per Bed | 930155.231 | +0.038 | ▲ risk |
| Net To Gross Ratio | 0.311 | -0.026 | ▼ risk |
| Beds | 52.000 | -0.013 | ▼ risk |
| Medicare Day Pct | 0.253 | -0.013 | ▼ risk |
| Medicaid Day Pct | 0.098 | +0.010 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.6M
Current margin: 1.4%
Projected margin: 10.9%
Grade: C
Comps: 85
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.284 | 0.672 | 38.8% | $2.6M | 55% | 24mo |
| Payer Mix Optimization | 0.649 | 0.733 | 8.5% | $1.3M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.311 | 0.450 | 14.0% | $791K | 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 | 28.5 | [25.0, 75.0] | P47 | 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. |